New Delhi: Steel industry players, including JSW Steel and Tata Steel, have sought government intervention to remove supply chain constraints for ensuring the availability of propane gas for coated steel units, as supplies have been disrupted due to the West Asia crisis, according to industry officials.
Propane gas is used to provide the steady heating required to melt zinc during the coating process, ensuring a smooth and corrosion-resistant finish. It is a byproduct of natural gas processing and petroleum refining.
The gas shortage has raised concerns within the Indian steel industry, which is the second-largest globally and has invested significantly in setting up colour-coated steel production units to meet rising domestic demand, an industry official said on the condition of anonymity.
"Steel companies have sought government intervention in view of the situation. ... if the situation persists, it could create major challenges," an official of a leading steel company said.
Queries sent to leading steel companies, including JSW Steel and Tata Steel, seeking comments remained unanswered at the time of publishing this news.
Jindal Stainless, on Friday, had said that the supply crunch of industrial gases has adversely impacted its several plants. "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," the company's MD Abhyuday Jindal said.
Among Indian players, JSW Group firm JSW Steel Coated Products Ltd is India's largest manufacturer and exporter of coated steel. Tata Steel arm Tata Steel Colors designs, manufactures, distributes, constructs and services a wide portfolio of colour-coated steel products and building solutions across multiple sectors. AMNS India also produces colour-coated steel at its plant in Hazira, Gujarat.
Source Name : Economic Times