Second wave hurts manufacturing sector

Industrial sectors across the spectrum that use steel as a major component have been severely impacted during the second wave of the pandemic.

Non-availability of oxygen, disruption in logistics and absence of key professionals are some of the factors that might be attributed to this impact.

Automobile sector has suffered because of ban on use of oxygen as auto component plants use oxygen in a significant way for welding purposes. Auto maker Maruti Suzuki was shut for about 16 days due to shortage of industrial oxygen and suffered 71 percent month-on-month drop in volume in passenger vehicles in May.

Tata Motors and Mahindra & Mahindra’s sales dropped 40 percent and 50 percent respectively due to factors like lack of oxygen and disruption to logistics infrastructure. “The vehicle production during the month was impacted due to shutdown to divert oxygen for medical use,” MG Motor said.

The secondary producers who were already impacted to a much greater extent by the pandemic and rise in iron ore prices were further hit by the oxygen shortage.