Shortage of long product steel hurting EPC companies as cost goes up

Integrated steel producers focusing on high margin flat steel to tackle high debt position

With large integrated producers focusing on high margin flat steel production, the domestic steel industry is facing a shortage of long products that is hurting the margins of contracting companies.

“There is a shortage of specialised steel pipes due to which we are forced to delay the execution of projects. We are finding it difficult to procure the material,” said M S Unnikrishnan, managing director and chief executive officer of engineering company Thermax. “It makes no sense to import these products as the duty applicable on it makes it costly for us,” he added.

There has, in fact, been a