India’s biggest stainless steel manufacturer Jindal Stainless Ltd said several processes across its plants have been adversely impacted due to shortage of industrial gases such as propane/ LPG and natural gas. It has also sought clarity from the government on the supplies to industrial consumers and assurances on regular supplies. 

“Given the constraints in fuel availability, our plants are operating at a rationalised capacity,” Abhyuday Jindal, managing director, Jindal Stainless said in a statement. 

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Unlike 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.

Additionally, the company said 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.

Stating that the Government is actively prioritising fuel allocation for critical sectors, Mr. Jindal said clarity on the allocation percentage for industrial propane/LPG and natural gas, along with assurance of regular supplies, would be important for the stainless steel industry to plan and optimise operations.

“In the absence of such clarity, we foresee a cascading effect across the industry, the severity of which will depend on how quickly these issues are resolved,” he added.