Induction operators in major Indian markets are running their units only in single shift. Besides in south India, plants are operational only for 4 days in a week.
A senior official of Raipur Induction Furnace Association reported, “We are planning to curtail production by 50% for plants, which have normal tariff plans. While, the rest are planning to shift from higher load factor (63%) tariff to normal tariff. We have taken this step in order to match demand-supply chain.”
Few days back, Durgapur based large manufacturers were also decided to produce semis only in night shift. But, they were unable to continue due to liquidity crunch and high credits from the market. Moreover in rest part of India including Odisha, Punjab, Gujarat and Maharashtra, production in plants is not on full fledged.
In conversation with few large scale industries, SteelMint assessed that steel demand in Indian domestic market is still subdued. Negative sentiment prevailing in Chinese steel market is also one of the reasons to pull down steel demand and prices in Indian domestic market.
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