Indian steel industry pays attention to production disruption in 2020
23 May 2019 14:18 reported by Ivy Wei
Indian steel industry watched out the production disruption in 2020. The license of around 288 merchant mines would expire before March of next year.
Ratings agency India Ratings and Research (Ind-Ra) indicated that domestic steel production would be significantly influenced by any possible delay in auction of mines. With around 60 million tons of actual production of iron ore from these mines might be disrupted.
As a result, it would have a strong impact on mills, including JSW Steel, Rashtriya Ispat Nigam Ltd. (RINL) and merchant miners. In addition, the auction process for the mines might take three to six months. The shortage of domestic iron ore supply might push the mills to increase import of iron ore mix.
More imports would thus occur, and it would then push the cost of steel production to go up.
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