India: Induction Furnaces & Rolling mills to go on a strike at Muzaffarnagar starting from Nov 3

Monday, November 01,

SteelMint Exclusive

Induction Furnaces and Rolling mills in Muzaffarnagar are going on an indefinite strike starting from 3^rd Nov.

According to an Ingot manufacturer in Muzaffarnagar, “there are nearly 70 Induction Furnaces on an avg. capacity of 6 tonnes and 25 to 30 Rolling mills including the automatic ones. Most of these plants are in favor of the strike.”

 A no. of reasons could be attributed to the strike:

·         Higher prices of raw material –Iron ore and Sponge iron

·         Lower conversions/ margin due to higher input costs

·         High volatility in the steel market

·         Higher electricity charges

·         Higher excise regulation

·         Manufactures in favor of implementing entry tax

The strike might have an impact on the steel prices in Muzaffarnagar and they may move upward. But the hike may be of Rs 100-200/MT keeping an eye on the lower demand for finish goods. Whereas, prices in rest of the mandis’ are expected to remain stable.