Many steel wire units may shut down due to raw material shortages, industry body says

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The yarn manufacturers have sought government intervention to ensure the supply of raw materials.

Calcutta:

Steel wire manufacturers, part of the labor-intensive small and medium-sized enterprises (SMEs) sector, face severe raw material shortages that could lead to the closure of several units, said Sunday a senior official of the industrial institution.

About 100 organized sector units that provide jobs for around five lakh workers in the country are already operating below 50% of their nominal capacity, and if the crisis continues, many will have to shut down, the official said.

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The yarn manufacturers have sought government intervention to ensure the supply of raw materials and a window for imports of specialty items that are not produced domestically.

“The industry is facing a serious shortage of high-quality wire rod, the main raw material for the production of wire, which has various applications in domestic construction,” said the general secretary of the Manufacturers Association. steel wire, Tirthankar Banerjee, at PTI.

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“The shortage of high-quality wire rod is 50 percent, and it is due to insufficient domestic supply and import restrictions,” he said.

The association urged the Union government to ask the Steel Authority of India (SAIL) to rationalize its specialized wire rod factory in Burnpur and advise Rashtriya Ispat Nigam (RINL) and other private steelmakers in supply raw materials in adequate quantity to the SME sector during the price fair.

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