India’s refractory companies exploring new destinations to lower Alumina dependency from China

The Indian refractory companies are making arrangements to source vital raw materials like alumina from new destinations to lower dependency from China, as pressure builds on the industry to secure untroubled supplies.

The pivotal refractory companies have already held conversations with leading metal and steel makers like Tata Steel, JSW Steel and Steel Authority to lessen the dependence on China.

Sameer Nagpal, Group CEO, Dalmia OCL said: “India-China trade tensions have been there for the past three years, and now is the high time we need to kind of de-risk that. We as a company have tried to source raw material outside China to balance out the ecosystem.”

“More than 40% of the raw materials for refractory companies in India are sourced from China.”

Pramod Sagar, Chairman, Indian Refractory Manufacturer’s Association (IRMA) stated: “Big companies like JSW Steel, Sail and Tata Group held a meeting with us two days ago to discuss other options to source raw material. Whether border tensions escalate now or not, we need to reduce our dependence.”

“Raw materials can also be sourced from other big players like Europe, Brazil, South Africa and Turkey, with cost 30-40%.”

Sunanda Sengupta, EVP-Sales, TRL Krosaki said:  “We still depend on China for alumina and magnesia based refractory raw materials, but we have slowly moved to other destinations.”

The Indian refractory industry is an INR 9,000 crore market, with major players such as TRL Krosaki, Dalmia OCL, RHI Magnesita India.

About 75% of the refractories manufacturers using alumina and other raw materials are used with the rest being consumed by cement and glass, ceramics, petrochemicals and boiler industries.

India imported high alumina refractory cement used in steel and cement companies worth INR 25.3 crore in 2019-2020 as against, INR 12 crore in 2018-2019.