Metal industry facing severe crisis due to Russia-Ukraine war

Due to fast increasing prices of metals including Zink, Copper, Brass and Nickel and daily fluctuation in the prices of basic raw materials used in manufacturing stainless steel due to present war between Russia and Ukraine the prominent suppliers of metals in world in which Russia alone holding over 8% share besides huge quantity of metals raw material being supplies from other affected European countries has been adversely affected steel industry as well as units manufacturing steel components in Haryana state especially at Jagadhari known as a hub for manufacturing utensils and other metal products having more than a thousand units in the town supplying goods in India as well as all export markets across the world. According to steel manufacturers, the prices of basic raw material used in steel industry is fluctuating every day since past about two weeks as such they are forced to slow down their production and sell steel products due to fast rising production cost.

Similarly, Hisar in Haryana state known as ‘Steel Town’ have over a dozen large scale steel manufacturing units supplying material to number of steel products manufacturers in the country. The manufacturers told that they are unable to procure basic raw material used in steel industry due to fast fluctuation prices of raw material in national and international markets as a result of present unrest in the world as such are forced to slow down production upto 50% of capacity. Past two years scenario reveals that overall industry in the country is facing slump and over 40% manufacturing units in the country including Haryana have become sick due to epidemic outbreak.

President of Jagadhari Metal Manufacturers & Suppliers Association Sunder Lal Batra told that metal manufacturers in the town  are disappointed over daily change in the prices of widely used raw material in steel industry including copper witnessed increase in price from Rs 750/- to Rs 850/- per kg, Zinc increased from Rs 300/- to Rs 350/-per kg, Tin increased from Rs 1100/- to Rs 1500/- per kg and Nickel increased from Rs Rs 1900/- to Rs 2100 per kg in couple of days after war stared expecting further rise in prices.

Talking to media persons, Executive Director Abhiyudya Jindal of Jindal Steel at Hisar said that he has seen such worldwide instability in steel industry first time in the country which needs perfect management policy in procurement of raw material, production and sale at this crucial stage. He said, refined Nickel is an important component used in manufacture of stainless steel being supplied from Russian and other European countries