Industries in Punjab have extended their two-day shut down until July 10 due to the acute shortage of power. The shortage is a result of rising demand in the agricultural sector due to the paddy season.
The Punjab State Power Corporation Limited has restricted operations of large-scale industries using over 100 KW of power. Many steel mills thus could face the impact of this decision. Steelmakers are also worried about completing their orders in time to prevent losing business.
A slowdown in production activity due to power shortage has supported prices for ingots in Mandi Gobindgarh, believe market participants. Prices were otherwise slated to fall, mills informed Davis Index.
Manufacturers anticipate a rise in prices for semi-finished and finished steel in the market if the restrictions continue.