South African power tariff reduction may boost global supply
If South Africa approves a special power tariff of 62 cents/kWh for ferrochrome producers, it could restart idled capacity, increasing global supply and pressuring prices.
INDIANMETALSANDFERROALLO / Q4-FY26 / risks
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Indian Metals and · Material risks, their source context, and severity in the latest available quarter.
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Material risks this quarter
high
Startup costs and one-offs at new facilities
K&R1 and K&R2 ramp-up involves heating periods, discom power costs, and fixed charges for transmission corridor, which may temporarily impact margins.
Forex hedging mark-to-market volatility
The company hedges 25-30% of forex exposure; sharp rupee depreciation led to a notional MTM loss of ~₹28 crore in Q4, which could reverse if rupee appreciates.
Dependence on metallurgical coke and thermal coal prices
Input costs for met coke and thermal coal remain volatile; any sharp increase could offset cost reduction benefits from renewable energy and coal linkages.