Russia Ukraine War: The war between Russia and Ukraine increased the rate of steel and scrap of Punjab's industry by Rs 1400 per tonne

February 27, 2022
Russia Ukraine War: The war between Russia and Ukraine increased the rate of steel and scrap of Punjab's industry by Rs 1400 per tonne. Publish Date: Mon, 28 Feb 2022 08:26 AM (IST)Updated Date: Mon, 28 Feb 2022 09:19 AM (IST)

The impact of the ongoing war between Russia and Ukraine on the steel industry of Punjab. (signal picture)

According to Ishu Bansal, President of Russia Ukraine War North India Import Association, about 10 thousand tonnes of scrap is consumed daily in Mandi Gobidgarh. Out of this, 60 percent scrap comes from Germany, Netherlands, France, Poland, Italy, UK, Russia and Ukraine besides USA.

Iqbaldeep Sandhu, Mandi Gobidgarh (Fatehgarh Sahib). Russia Ukraine War: The ongoing war between Russia and Ukraine has also affected the steel industry of Punjab. Within a week, the rates of steel and scrap have increased by Rs 1400 per tonne. If the war goes on for a long time, these prices may go up. From February 1 till now, the rate has increased to Rs 2700 per ton. There are about 400 units in Steel City Mandi Gobidgarh. These include 120 furnaces, 150 rolling mills, 50 pipe plants and 80 other small units. All the units get scrap from several European countries including Ukraine and Russia. The supply of scrap remains constant, so only two to three days' stock remains available. The reason for not keeping much stock is that prices keep going up and down.

According to Ishu Bansal, President of North India Import Association, about 10 thousand tonnes of scrap is consumed daily in Mandi Gobidgarh. Out of this, 60 percent scrap comes from Germany, Netherlands, France, Poland, Italy, UK, Russia and Ukraine besides USA. All scrap comes by sea through the Middle East, but due to the war, ships coming from the Black Sea will now have to divert their way. This will delay the arrival of scrap and will also increase the cost. Not only this, shipping companies have stopped all containers booked for finished goods for Ukraine. If NATO countries cooperate in the war, there will be a lot of loss.

Industry struggling with raw material

Ukraine and Russia supply aluminum and copper to the world. If the war continues, the price of iron will increase, but raw materials will have to be fought. North India Import Association vice-president Praveen Gupta says shipping companies are hesitant because of the war. At the same time, Vinod Vashisht, president of All India Steel Re-rollers Association, says that Russia supplies steel to European countries. Steel and scrap reach India from these countries. When there is shortage, not only India but the whole world will be there.

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