JSW Steel shares rise over 2%, after arm seeks govt help to secure gas supplies amid Middle East crisis

The shares of JSW Steel gained as much as 2.2% to their day's high of Rs 1,157 on the BSE on Friday. The steel major's unit, JSW Steel Coated Products, sought government intervention to secure liquefied natural gas and propane to avoid output disruptions amid the massive shortages triggered by the ongoing war between Iran and US-Israel.

"Any disruption in our production will have an adverse impact on our downstream customers and may lead to a supply deficit in these sectors," JSW Steel Coated Products, which is India's largest manufacturer of coated steel products or value-added steel goods, said in a letter to the federal steel secretary on March 10, as reported by Reuters.

Notably, the ongoing gas crisis was triggered earlier this month after Iran threatened to attack any ship trying to pass through the Strait of Hormuz, following military strikes by the US and Israel.


India is a major importer of natural gas. The country consumed about 190 million metric standard cubic metres per day (mmscmd) of gas on average during April-October last year, with imports meeting a significant portion of this demand.

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India is the fourth-largest LNG importer globally after China, Japan and South Korea. According to data from Kpler, the country sources around two-thirds of its LNG supplies from Qatar, the UAE and Oman.

Earlier, PTI reported that steel industry players like JSW Steel and Tata Steel have sought government intervention to ease supply chain constraints for propane gas for coated steel units.

Propane gas is used to provide the steady heating required to melt zinc during the coating process, ensuring a smooth and corrosion-resistant finish. It is a byproduct of natural gas processing and petroleum refining.

JSW Steel shares have declined more than 2% in the past five days, and over 8% in the past one month. The stock has gained over 8% in the past one year.

(With inputs from agencies)

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