Steel industry leaders discuss global LPG supply chains.
The steel industry is facing potential disruptions due to shortages in Liquefied Petroleum Gas (LPG) supplies, a critical input for steel production. The Steel Ministry has raised concerns with the Petroleum Ministry regarding the availability of LPG, particularly in light of recent geopolitical events.
According to sources, the conflict in Iran has contributed to a reduction in gas availability, impacting industries that rely on LPG. The government is reportedly prioritizing cooking gas supplies, potentially diverting resources away from industrial users like steel manufacturers.
To mitigate the impact, steelmakers are exploring alternative sources of propane, including potential supplies from Russia. The disruption in LPG supply could have broader implications, affecting the production and cost of steel, which is essential for various sectors, including construction and manufacturing.
The Steel Ministry is actively seeking solutions to ensure a stable supply of LPG to avoid disruptions in steel production, which could have knock-on effects on the wider economy. Securing alternative supply chains and diversifying sources are being considered as potential strategies.
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