India’s largest stainless steel producer Jindal Stainless Limited has been forced to scale back operations due to shortages of industrial gases, a problem the company links to the ongoing conflict in West Asia.
According to managing director Abhyuday Jindal, disruptions in the supply of key fuels such as propane, liquefied petroleum gas (LPG) and natural gas are affecting multiple production processes across the company’s plants, forcing facilities to operate at rationalized capacity levels.
Industrial gas shortage disrupts stainless steel production
Jindal Stainless stated that several processes across its plants have been adversely affected due to the shortage of industrial gases. Abhyuday Jindal emphasized that the stainless steel sector has a structural dependence on external gas supplies. “Due to the heavy dependence of stainless steel manufacturing on industrial gases such as propane, LPG and natural gas, several processes across our plants have been adversely impacted,” he said.
Why stainless steel production is particularly vulnerable
Unlike the conventional steel sector, which typically uses blast furnace and coke oven gases as internal energy sources, stainless steel production relies on a scrap-based route that does not generate such gases internally. This makes stainless steel producers significantly more dependent on external fuel supply chains. Because of the current supply constraints, Jindal Stainless plants are operating at reduced capacity levels.
Global shipping disruptions add further pressure
Beyond fuel shortages, the company is also facing logistical challenges linked to geopolitical tensions. According to Jindal, shipping routes are being disrupted, some vessels are being diverted, transit times are becoming longer and cargo deliveries are facing delays. These developments are increasing pressure on supply chains and profit margins.
Industry seeks clarity on gas allocation
Jindal Stainless has called on the Indian government to provide clear guidelines regarding the allocation of industrial gases, particularly propane, LPG and natural gas. The company said that predictable supply allocation is essential for operational planning. “We are seeking clarity from the government on the allocation percentage for industrial propane/LPG and natural gas, along with assurance of regular supplies,” Jindal stated.
He warned that lack of clarity could trigger a cascading impact across the stainless steel industry, depending on how quickly supply constraints are resolved.
Jindal Stainless is the country’s largest stainless steel manufacturing company with a 0.8 million mt per year capacity mill located at Hissar in Harayana state and another 2.2 million mt mill at Jajpur in the eastern state of Odisha.