Gas Shortage Disrupts JSW Steel Operations, Shutdown Risk Looms

Operations at several steel plants owned by India’s JSW Group have been disrupted due to worsening gas shortages, with one unit facing a possible shutdown, according to an internal note cited by Reuters. The supply crisis stems from ongoing Middle East conflicts that have disrupted fuel shipments and maritime logistics, affecting operational stability and supply chains across the company’s steel-coated products business.

JSW warned that the shortages could impact its ability to meet sales and supply commitments, particularly for tinplate production under the government’s production-linked incentive (PLI) scheme, prompting a request for a six-month extension. The company also received a force majeure notice from key supplier Petronet LNG Ltd after LNG shipments were affected by the geopolitical situation, further intensifying supply uncertainties.

The broader steel industry is also under pressure, with the Indian Steel Association cautioning that shortages of propane and liquefied petroleum gas could severely affect micro, small and medium enterprises linked to the sector. India has introduced emergency measures prioritising gas allocation to essential sectors, while industry bodies have urged the government to fast-track subsidised spot imports from alternative regions to prevent production disruptions and protect employment.

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