SAIL facing order cancellations, re-scheduling due to lockdown: Report

Steel Authority of India Ltd (SAIL) has seen some of its orders canceled due to slower processing at ports due to a 21-day foreclosure imposed by the central government to prevent the spread of coronavirus in the country. The move hit the flow of goods and shipments across the country, a source said on condition of anonymity to Reuters news agency.

The country’s largest state-owned steel company suffered a marginal impact on production, with some of its stocks being piled up in ports due to the situation.

Most steel companies have experienced similar disruptions and have suspended operations in some of their factories due to the foreclosure.

Tata Steel and ArcelorMittal Nippon Steel India have their production downstream; Jindal Steel & Power is still in operation, but if the situation persists for more than a week, this could have an impact on production. JSW Steel Ltd said manufacturing operations at all of its sites have since been curtailed or suspended. Steel companies faced logistical problems, on the one hand, and lower demand, since most user industries were in shock from the closure.

Meanwhile, people queued in several cities across the country for essentials, while trucks were stranded at state borders and public transportation was suspended two days after Prime Minister Narendra Modi ordered the 21-day lockdown to protect a population of 1.3 billion.

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