NBVL Ferro-Silicon Output Surges 480% on Strong Export Demand

NBVL

NBVL ferro-silicon output achieved remarkable growth with production reaching 13,490 tonnes in FY2025, compared to just 2,380 tonnes the previous year. The Indian ferro-alloy producer's NBVL ferro-silicon production increase of nearly six times reflects strong international orders, particularly from the US market, amid challenging domestic conditions and oversupply pressures.

Strategic Furnace Conversion Drives Production Expansion

NBVL ferro-silicon production capacity expanded through strategic infrastructure investments beginning in January 2024. The company launched its first ferro-silicon furnace with 11,000 tonnes annual capacity, followed by a second furnace in December 2024. However, the second furnace switched back to silico-manganese production on May 1, 2025, following the US imposition of additional 10% tariffs on ferro-silicon imports.

Meanwhile, the furnace conversion strategy impacted silico-manganese production at NBVL's Paloncha operations. Silico-manganese output decreased 4.4% to 25,617 tonnes in Q4 FY2025 as two furnaces were temporarily converted to ferro-silicon production. Total silico-manganese production fell slightly to just under 104,200 tonnes for the full financial year.

Export Focus Delivers Revenue Growth Despite Market Challenges

However, NBVL's export-oriented strategy proved successful despite domestic market headwinds and international trade tensions. Export sales constituted 40% of total sales during FY2025, with the majority of ferro-silicon shipments destined for US markets. Combined silico-manganese and ferro-silicon sales reached 42,327 tonnes in Q4, significantly higher than 20,068 tonnes in the previous quarter.

Therefore, the company's strategic pivot toward international markets generated improved revenue and profitability metrics. NBVL management indicated expectations for better performance in FY2026 while targeting Japanese markets rather than domestic or other international destinations. This geographic diversification strategy aims to reduce dependence on tariff-affected US ferro-silicon trade.

Market Conditions Shape Future Investment Strategy

Furthermore, NBVL management expressed caution about domestic expansion plans citing existing oversupply conditions in India's ferro-alloy market. The company indicated it would consider expansion only after securing dedicated raw material sources to ensure competitive cost structures. This conservative approach reflects broader industry challenges including volatile raw material prices and intense competition.

As a result, the US tariff implementation on ferro-silicon products demonstrates how trade policies directly influence production decisions and market strategies. NBVL's quick response in switching the second furnace back to silico-manganese production illustrates operational flexibility in navigating changing trade conditions while maintaining export competitiveness.

The Metalnomist Commentary

NBVL's dramatic ferro-silicon output expansion exemplifies how Indian ferro-alloy producers leverage export opportunities to offset domestic market weakness, though trade policy changes require rapid operational adjustments. The company's strategic furnace switching capabilities demonstrate the importance of production flexibility in navigating volatile international trade conditions that increasingly characterize global ferro-alloy markets.