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Oxygen returns to steel as case load drops
Steel Insights Bureau
As Covid caseload drops and need for oxygen gets moderated, steel sector is now looking eagerly at resumption of normal operations.
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“Fortunately, the numbers of new infections in India have started showing some decline and with vaccinations, I am hopeful that India will be able to overcome the situation sooner rather than later, which will help us focus our energies on the profitable growth,” said R J Hughes Chairman of Linde India in his letter to shareholders.
Linde is a major supplier of industrial as well as medical oxygen in India.
The Central government has allowed supply of oxygen to certain industries like on ‘temporary basis’, a decision taken after the Union Home Ministry got a request from oxygen users to allow them use oxygen for industrial purpose.
Some of the industries that made the request were secondary steel units, continuous process industries, furnaces, refineries, aluminum, copper processing plants, infrastructure projects and plants, Micro, Small & Medium Enterprises (MSMEs) exporters of manufacturing sector requiring oxygen for production, and also food processing units.
“Department for Promotion of Industry and Internal Trade (DPIIT) may allow usage of liquid oxygen to the above-mentioned industries/ projects/ units on a temporary basis subject to ensuring an adequate supply of liquid medical oxygen to hospitals and other medical purposes as per demands of States/ UTs as well as adequate supply to industries/ sectors such as ampules and vials, pharmaceuticals, manufacturing of oxygen cylinders and PSA plants, neutral glass tubing and defence forces,” Home Ministry said.
Secondary and smaller steel players who account for 40-45 percent of total steel production were impacted to a greater extent as they do not produce their own oxygen.
The output of secondary steel players may see double digit fall in the short-term due to the oxygen crisis and labour shortage due to the second wave of Coronavirus, analysts said. To meet the rising demand of medical oxygen in view of the raging Covid-19 wave, the government has put a ban on supply of oxygen for industrial use from April 22.
Steel mills’ own oxygen usage is mainly in the form of gas, but most integrated mills have the capability to provide liquid oxygen that is often kept as backup.
Manufacturers of sponge iron, or direct reduction iron (DRI) are not too dependent on oxygen but some have flagged tight oxygen supply as a concern in their operations.
DRI production uses two routes. One uses coal and the other uses natural or syngas for the reduction process. Coal-based DRI production is more popular because it is less capital intensive. DRI producers that are forward integrated to produce long or flat steel products typically need oxygen for the steelmaking process.
Primary steel makers continue to focus on medical infra
After joining hands to undertake the mammoth task of supplying liquid medical oxygen, primary steel makers are continuing and even doubling up their efforts to set up hospital and medical care facilities requiring oxygen supply.
RINL
RINL has recently set up a major Covid Care Facility with 300 beds (Phase-1) out of the planned 1,000 bed facility at Gurajada Kalakshetram and Hostel-1 at RINL’s Vizag steel plant.
The facility was inaugurated recently by Steel Minister Dharmendra Pradhan along with Faggan Singh Kulaste, Minister of State for Steel.
PK Rath, CMD, RINL said that all the necessary measures are being taken by RINL to combat Covid pandemic and including vaccination and supplying 6,700 tons of liquid oxygen to states like Andhra Pradesh, Maharashtra and Karnataka during the second wave of Covid.
The Gurajada Kalakshetram complex is equipped with centralized air conditioned Covid wards, central oxygen supply with back up of 300 jumbo oxygen cylinders, 20 oxygen concentrators and 10 CIPAP machines.
All beds are provided with oxygen humidifiers with distilled water & flow meters manned by doctors and paramedical staff.
