Indian steel mills to cut run rates amid lockdown, raw materials supply disruptions expected

Small, induction furnace mills producing secondary billet and rebar in India have started shutting down their meltshops amid the lockdown mandated by prime minister Narendra Modi on March 24 to control the spread of the novel coronavirus (2019-nCoV).

"I have received notification from some of these mills that they will stop production," a steel trader handling Indian cargoes said on March 25.
However, larger blast furnace-based steel mills - such as JSW Steel, ArcelorMittal Nippon Steel India and Tata Steel - are still running their steel mills normally for now, market sources told Fastmarkets on Wednesday March 25.

"[At least one] major Indian steel mill is still running its blast furnace normally, but it will be very hard to ship cargoes out for the next three weeks," a major mill source said on Wednesday, adding that mills will be under increasing pressure to sell their steel products, especially if logistics systems are not working effectively and...

Published

Paul Lim

March 25, 2020

10:30 GMT

Singapore