Steelmaker Kamdhenu group has resumed 60pc operations at its plants across India, according to media reports.
The company plans to ramp up production after evaluating market conditions. Shortage of manpower and disruption in the supply of raw materials are major challenges steelmakers in the country continue to face. With the number of fresh COVID-19 cases continuing to increase, the inter-state movement continues to be hampered.
The company believes it could take another three-four months for steel demand to pick up in the construction sector. With the onset of south-west monsoon in India, construction activities have slowed.
Most primary steel mills are resorting to exports until the domestic demand recovers.
Secondary steel producers across regions are operating at lower scales in response to weak demand.
Some primary steel producers have also curtailed production. RINL is currently operating at around 33pc of the production capacity. The company has three blast furnaces, each with an annual production 7,500mt. Only one blast furnace is currently operational at 6,500mt hot metal production capacity. The steelmaker’s second blast furnace is likely to re-start in July.
JSW steel is currently working at 80pc of capacity.