Jindal Stainless flags operations disruption due to fuel shortage

India's Jindal Stainless on Friday said that its plants were operating at a reduced capacity because of fuel shortages in the wake of disruptions from the West Asia war.

 

"Due to the heavy dependence of stainless steel manufacturing on industrial gases such as propane, LPG and natural gas, several processes across our plants have been adversely impacted," the company said in an exchange filing.

 

India's crude oil, LPG, and liquefied natural gas (LNG) supplies have been disrupted due to shipping constraints after the U.S. and Israel's war with Iran halted traffic through the Strait of Hormuz, compelling India to scramble for alternatives such as buying more from Russia.

 

 

Authorities have also diverted gas supplies from industry to prioritize household consumption.

 

"Given the constraints in fuel availability, our plants are operating at a rationalised capacity," the company added.

 

The company also flagged additional pressure on supply chains and margins from disruptions in global shipping routes that have caused vessel diversions, longer transit times and cargo delays.

 

Jindal Stainless, the country's biggest stainless steel producer, had last week warned of possible shipment delays.

 

Scores of small Indian steel producers have warned of cuts to production as the escalating West Asia war disrupts gas supplies to India, the world's biggest producer of the alloy after China, Reuters had reported earlier.