you are here: HomeNewsBusiness
Last Updated : Mar 26, 2020 01:20 PM IST | Source: PTI

Coronavirus impact: Steel players consider to cut production

The industry sources said top management of major players like Tata Steel, JSPL, ArcelorMittal Nippon Steel India (AMNS India) and state-owned SAIL and RINL are also discussing similar move.

  • bselive
  • nselive
Todays L/H

Steel companies, including those under public sector, are considering to scale down production amid coronavirus outbreak, according to sources. Sajjan Jindal's JSW Steel has already announced its decision to cut production at its plants.

The industry sources said top management of major players like Tata Steel, JSPL, ArcelorMittal Nippon Steel India (AMNS India) and state-owned SAIL and RINL are also discussing similar move.

In many states, movement of raw material needed for Steel making is being impacted due to nationwide lockdown, they added.


Employees in the industry are facing difficulties in reaching their offices.

COVID-19 Vaccine

Frequently Asked Questions

View more
How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

View more

"There is no purpose of just producing and building up inventory levels. Till when the players will produce and keep on piling the output. They can't stop the blast furnaces which are supposed to function continuously, but reduce production," a source said.

Blast furnace is a large structure of about 30 metre high at steel plants. It is lined with refractory firebricks that can withstand temperatures to as high as 2,000 celcius.

Once stopped, it takes several months for a steel company to re-start the critical steel making equipment.

During the lockdown, dispatch by railways and roads is also affected.

According to industry sources, local administration is not allowing trucks carrying goods to ply on road.

Steel players have already apprised the ministry about the issues being faced by them and urged to ask local administration to allow movement of important raw material and finished goods.

Those on duty at important plant locations are facing difficulties in getting their passes made by the local administration.

JSW Steel, Tata Steel, JSPL, AMNS India, SAIL and RINL together produce about 45-50 percent of the country's total steel production annually.

At present, India's total installed crude capacity is at about 140 million tonne per annum.
First Published on Mar 26, 2020 01:10 pm