INDIA LOCKDOWN: The supply chain shock to the ferrous industry

On Tuesday March 24, India’s Prime Minister Narendra Modi announced that 1.3 billion individuals would be put under a state of lockdown for 21 days to prevent the spread of the Covid-19 virus in the country.

While the steel sector is classified as an essential service under India’s Essential Services Maintenance Act 1981, it is not insulated from the implications of the lockdown.
Fastmarkets looks at how the lockdown is affecting the ferrous market supply chain and the possible ramifications for the future.
Immediate impact
As Modi announced the lockdown, businesses operating at India’s Kalinganagar Industrial Estate rushed to the local district collector’s office to seek clarity on the workforce allowed to maintain their operations, a market participant who works in the area told Fastmarkets.
The district collector or district magistrate is a government employee - an officer of the Indian Administrative Service - in charge of the general administration of a district. The Kalinganagar Industrial Estate is an industrial town in the state of Odisha, the largest iron ore-producing state in the country.

It is also a major steel production hub with companies such...

Published

Deepali Sharma

March 30, 2020

06:30 GMT

Singapore