Jindal Stainless MD Cites Heavy Dependence on Industrial Gases, West Asia Conflict as Impacting Operations.

Jindal Stainless Faces Industrial Gas Shortage, Operating at Rationalized Capacity

Jindal Stainless, a leading stainless steel manufacturer, has reported that its operations have been adversely impacted by the low supply of industrial gases, including propane/LPG and natural gas. The company's MD, Abhyuday Jindal, stated that the fuel constraints due to disruptions in global shipping routes have added pressure to the company's supply chain and margins.

Key Statistics:

• Jindal Stainless' Hisar (Haryana) facility manufactures around 0.8 million tonnes of stainless steel per annum (MTPA).
• Jindal Stainless' Jajpur (Odisha) facility manufactures about 2.2 MTPA.

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The stainless steel industry's dependence on industrial gases has been severely impacted, with plants operating at a rationalized capacity. The company's supply chains and margins are also under pressure due to disruptions in global shipping routes, resulting in vessel diversions, longer transit times, and cargo delays.

Government Response:

The Centre is actively prioritizing fuel allocation for critical sectors, and Abhyuday Jindal appreciates the government's efforts. However, clarity on the allocation percentage for industrial propane/LPG and natural gas, along with assurance of regular supplies, is necessary for the stainless steel industry to plan and optimize operations.

Impact of Global Events:

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The closure of the Strait of Hormuz, a critical waterway, has led to a shortage of LPG, LNG, and oil in India. The Oil Ministry has reported that domestic production of LPG has increased by 30% as of today, compared to 5 March. However, the long-term impact of the Iran war is still uncertain, with the United States Trade representative stating that any effects will be short-lived.