Indian ports Karaikal, Gangavaram, Krishnapatnam, Haldia, Vizag, Paradip, Kakinada, New Mangalore, Goa, Dharma and Gopalpur have declared force majeure, starting from the coming weekend, due to a 21-day lockdown from March 26.
The ports will keep operating as they are categorized as an “essential service” and the force majeure will help to offset the losses from possible delays in shipments. The ports which have declared force majeure include the biggest import coking coal hubs, and are also involved in import scrap shipments as well as export of billet and some flat steel products. Disruptions are possible for both imports and exports of raw materials and steel products, sources have told SteelOrbis.
“The major problem is demand [for raw materials] as mills will have to cut production in current conditions. Construction works are been shutting down, and car producers are stopping. Demand will fall critically in next 30 to 60 days,” a source said.