Shortage of industrial gas hits operations at steel plants

New Delhi: Supply crunch of industrial gases has adversely impacted several plants, Jindal Stainless MD Abhyuday Jindal said on Friday. He also sought clarity on the allocation percentage for industrial propane/LPG and natural gas, along with assurance of regular supplies, for the stainless steel industry.

Jindal Stainless is India's largest stainless steel manufacturing company with a 0.8 million tonnes per annum (MTPA) capacity in Hisar (Haryana) and a 2.2-MTPA facility in Jajpur (Odisha).

Speaking about the impact of the ongoing war in West Asia on his business operations, Jindal said that 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 the 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, he explained.

Given the constraints in fuel availability, plants are operating at a rationalised capacity. Additionally, 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, the MD said.

"We appreciate that the government is fully seized of the matter and is actively prioritising fuel allocation for critical sectors," Jindal said, seeking clarity on the allocation percentage for industrial propane/LPG and natural gas, along with assurance of regular supplies, which will be important for the stainless steel industry to plan and optimise operations.