Indian Metals & Ferro Alloys Dolly Khanna portfolio latest stock pick
Dolly Khanna’s latest stock pick is Indian Metals & Ferro Alloys. In the December 2024 quarter, she is seen holding 6,23,464 shares constituting 1.16% in her portfolio. The investment is worth ₹56 Cr at the CMP of ₹901.
MUKUL MAHAVIR AGRAWAL is an existing investor of Indian Metals & Ferro Alloys. He holds 5,99,329 shares in his portfolio constituting 1.11% valued at ₹55 Cr.
The Market Cap is ₹4900 Cr. The promoters hold 59%.
Ferro chrome
Ferro Chrome is primarily utilized in the production of stainless steel
World ferro chrome production in 2022was 14.665 million tonnes. In the first three months of 2023, the production was3.726 million tonnes as against 3.758 million tons in 2022 as against a corresponding period
Chrome Ore and power are the key input costs for the production of ferro chrome
About 80% of the world’s chrome ore reserves are found in South Africa & Zimbabwe; Kazakhstan, India and Turkey also have significant reserves
China
World’s largest producer of ferro chrome (output 6.45 million tonnes in 2022).Dependent upon imported chrome ore, primarily from South Africa and Turkey, thus resulting in high cost of production
Chinese cost of production acts as both ‘floor’ and ‘ceiling’
South Africa
World’s second largest ferro chrome producer with its market share of about 26%
Predominant position diluted by power shortages and rising power tariffs; other problems such as high internal logistics costs
Will remain a significant player by virtue of its huge chrome ore reserves and an established smelting industry
India
2022 annual production was 1.3 million tonnes. High cost of ore & reductants leading to higher cost of ferro chrome
Stainless steel
World
Global Stainless-Steel Production in 2022 was 55.255 million tonnes which was lower by 5.2% as compared to 2021 Global Stainless-Steel Production in Q1/2023 was 13.665 million tonnes which was lower by 5% as compared to Q1/2022
On going Ukraine-Russia conflict leading to high energy costs in Europe and lower demand Global Stainless-Steel Production is expected to reach 59 million tonnes in 2023 India
Low per capita consumption of stainless steel in India provides a likely opportunity for growth. Stainless steel consumption is 2.8 kgs against world average of 6 kgs (source: ISSDA)
India is now the second largest producer of stainless steel, production in 2022 was 3.8 million tons
Leading producer of ferro chrome in India accounting about 20% of output and 25% of exports
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