Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Posco’s steel plant in the Indian state of Maharashtra is facing supply chain and operation disruptions since early-March due to labour protests. 


This disruption at South Korean steelmaker’s plant, situated in Raigad district, is hampering the supply chain to the Indian auto industry — one of the major consumers of steel from this unit. As a result, auto makers are facing short supply of important auto parts and components. 


The director of Society of Indian Automobile Manufacturers (Siam) PK Banerjee said they have written to the chief minister of Maharashtra for his intervention to normalise the situation at Posco Maharashtra. 


The auto body noted that supply issues like this one are cropping up at a time when  companies are still recovering from the COVID-19 impact — and could be a major setback for the Indian economy.


Posco Maharashtra steel has a production capacity of 1.8mn mt of cold rolled steel, and 0.45mn mt of hot dip galvanized steel annually. Apart from the auto industry, the plant also supplies steel to the home appliances and consumer appliances industries. 

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