Limited supply of iron ore,weak demand,liquidity crunch and poor conversions have made re-rollers in India to cut their production said industry participants.
“We were running our plant at 50-60 percent capacity in the month of October,due to weak demand and high conversion cost we have decided to further restrict it to 20-30 percent.If prices go down further we have to shut our productions completely.”said a re-roller having a production of 15,000 mt per month in Raipur (Chattisgarh).
Situation is very similar in other states like M.P, A.P.,Kerala and Punjab. Most of mills based in these states are either on maintenance or running at very low capacity.With production reducing across India,chances are less that market will notice a sharp correction.
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