Indian steel mills step in to fill supply gap by Russia-Ukraine war

Steel mills in India rush to fill a supply gap formed by Russia’s invasion of Ukraine, as consumers from Europe to Africa turn to the world’s second-biggest producer, as Russia’s invasion of Ukraine has jeopardised steel supplies from both the significant producing countries. It has additionally pushed firms from Europe, the Middle East and Africa to reach out to Indian producers even as steel costs have increased 20% in the last month, as per the Jindal Steel & Power Limited (JSPL). There is a steel shortage in Europe, the Middle East, and the Africa region and that supply will be bridged partly by India and partly by China, as per V R Sharma, managing director of the Indian steelmaker. They are witnessing good orders from these places in the past week or so, with some buyers asking for immediate delivery for shipment in March and April. Nearly a third of India’s steel and iron ore exports were headed for Europe last year, trade data revealed. India exported 20.63 million tonnes in 2021. Industry experts anticipate Indian and Chinese steel mills to increase shipments to Europe to make up for supply shortages from Russia and Ukraine. Jindal Steel and Power Ltd (JSPL) anticipates demand generated by cuts to supply from Russia and Ukraine to enhance its exports to up to 40% of sales from 25% presently as it looks to take advantage of record-high steel costs. They used to export nearly 25%, in 2-3 months we will be exporting about 35-40% so that they can take a share of higher costs, JSPL managing director V R Sharma told the media. The firm is already booked till April 30 and will be booking orders for the coming month till the 30th of May. Image Source Also read: Top steelmakers ask for federal funding to cut carbon emissions