Imposition of lock down to prevent the spread of COVID-19 has weighed down market sentiments in Indian steel industry. Below listed are the impacts seen –
Auto companies suspend production: Several auto companies including Maruti, Hyundai, Hero, Escorts, Honda, Tata Motors, Ford India and Kia Motors have suspended their production till further notice.
Large steel mills continue production: Shortage of manpower and challenging environment has made the situation tough for Indian steel mills. “No shutdown in steel plant so far, however there is cut down in manpower allowed in plants which has impacted our downstream plant in Maharashtra”, shared a senior official from a private steel mill to SteelMint.
“Despite of all measures to combat the COVID, the plant production levels are being maintained uninterrupted with strict adherence to safety” Vizag Steel shared in a press release.
Trades in secondary steel market edge close to halt: According to ground reports, steel mills based in north-eastern, central and eastern India have received notice from the government to shut their operations.
There is suspension in material dispatches by most of the manufacturers.
Rumours of delay in payments over extension of lock down, was another matter of concern of secondary mills.
Inter and intra state material movement paralyzed: Lock-down in many states and sealing of key state borders has suspended inter & intra state material movement in major parts of India. Trade sources are of the view that this may continue for the entire week, citing orders from respective state govts.
Movement via railways function smoothly: “To ensure the essential supplies in various parts of the country, movement of goods trains will continue.”
Construction activities hampered: In a move to combat spread of COVID-19, Delhi Govt has imposed a lockdown in state till 31 Mar’20.
Few other states also were reported to have suspended construction activities, owing to shortage of manpower and lockdown by state govt.
Operations at few sea ports remain disturbed – Ministry of Shipping has notified ’transport service of carriage of goods by water and any service connected with loading/unloading or movement of storage of goods in any port are essential service ’.
As per close sources report to SteelMint, the ports situated in west coast of India are seriously affected by lockdown, whereas the port situated in the east coast of India are operational right now. Ports in western India – Kandla, Mundra , Hazira, Magdalla are closed till 25th and may extend closure if situation worsens. All material loading at these ports have been suspended. Goa port is closed since 20 Mar and its expected to remain shut till 29th Mar.
However, in eastern India based ports – Paradip, Haldia, Krishnapatnam, Gangavaram, Jaigarh, Chennai, Tuticorin are learnt to have been running normally. Dispatch from port through road may be affected owing to lock down in states.
All ports in India have to check the voyage of the ship that it should be more than 14 days (as this is the quarantined period) otherwise the ship will remain at anchorage position for the remaining days. Ship sanitation certificate will be issued by the official at Indian ports then the vessel will be allowed for berthing.
Leave a Reply