Jindal Stainless has been ‘adversely impacted’ by disruption in gas supplies
Company seeks certain clarities from the government
In a statement issued by Jindal Stainless and attributed to its MD Abhyuday Jindal, the company said, “Due to the heavy dependence of stainless steel manufacturing on industrial gases such as propane/ LPG and natural gas, several processes across our plants have been adversely impacted.
“Unlike conventional steel industry, which largely utilises blast furnace and coke oven gases as energy sources, the stainless steel industry follows the scrap-based production route where such gases are not generated internally.
“Given the constraints in fuel availability, our plants are operating at a rationalised capacity.”
Supplies of gas from the Middle East have been severely disrupted over the last several days due to the raging war between the US-Israel combine and Iran, which has spread to the entire Gulf region and led to the closure of the Strait of Hormuz, a critical maritime lifeline for the transportation of the petroleum products globally.
India has been badly affected since a large proportion of its petroleum products originate from the Middle East.
It added that disruptions in global shipping routes are resulting in vessel diversions, longer transit times, and cargo delays, which are also placing additional pressure on supply chains and margins.
