West Asia crisis pressures stainless steel profits. India's largest stainless steel producer, Jindal Stainless, reports significant operational challenges as LPG shortages and logistics disruptions from the regional conflict impact production capacity. The company is operating at rationalized levels due to heavy dependence on industrial gases for manufacturing processes. Fuel and power costs represent five to eight percent of topline revenue, with LPG critical for annealing and reheating operations. The current quarter impact remains limited due to inventory buffers, but the April quarter faces greater pressure as disruptions persist. Raw material availability is severely constrained, particularly nickel and scrap imports from the US, Middle East, and Europe. Shipping delays through the Strait of Hormuz are extending transit times and raising material costs significantly.
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