City's industrial sector in distress as war intensifies

Several foundry industries in Aurangabad and Jalna might face shortage of raw materials, minerals

VAIBHAV PARWAT

Aurangabad, March 1: The Russia-Ukraine war is likely to hit the industry. Some of the raw materials required by many foundry industries in India come from Ukraine. If the war continues, the prices of raw materials imported from this country are likely to rise. This is likely to hit the industries in Aurangabad indirectly.

There is a presence of steel industries in Aurangabad and Jalna. India’s steel industry is supplied with raw materials from many countries. The industries have to import scrap along with iron, metallurgical coal, manganese and other minerals. While the industry was recovering from corona, the Ukraine-Russia war intensified. Ukraine supplies large quantities of iron and manganese to many countries. The major centers for importing these goods in India are at Delhi, Kolkata, Mumbai and Pune. Raw materials and minerals from various countries come to these centers. From here, it is sorted and supplied to the industries in the state as per demand. The indirect impact of the war is likely to be felt by the industry if the supply chain in the international market is broken. It will affect the production and increase the prices of raw materials.

Steel prices rise

Rising prices of raw materials have pushed up the price of steel bars in the international market to Rs 65,000 per tonne. The prices of scrap in the international market have risen by 15 to 20 per cent. The cost of production has gone up to Rs 60,000 per tonne from Rs 57,000 per tonne in the past five days, said Vijay Mahajan, entrepreneur.

No impact at present

Nearly 80 per cent of the automobile parts are made in the country. But disruption of fuel supply from Russia could hit industrial transportation. If the cost of transportation increases, it can affect the price of manufactured goods. At present there is no shortage of raw materials. But if the war continues, it is likely to hit industries hard, said Prasad Kokil, chairman, Marathwada Zonal Council, CII.