Graphite India resumes Partial Operations at Durgapur Unit

As per the latest update, Graphite electrodes (GE) major, Graphite India has resumed partial operations at its Durgapur unit in West Bengal amid ease in lockdown restrictions starting from 4 May'20. The plant's capacity stands to be around 67,000 tonne.

The company had already started its Nashik plant partially with minimum manpower in mid-April that has a GE capacity of 13,000 tonne.

In case of GE plant in Germany, the local management of Graphite Cova GmbH German group of companies, (wholly owned subsidiaries in Germany) has also decided to operate the speciality and coating operations in the plant.

On the other hand, another Indian GE major, HEG Ltd has also resumed partial operations at its Bhopal plant in the last week of April.

While GE plants have resumed operations partially, its users EAF mills are struggling to operate with limited manpower and poor demand. The lockdown has halted the country's smaller electric arc and induction furnaces that account for about half of crude steel output. Major steelmakers including JSW Steel and Jindal Steel and Power are operating at 50-60% of their capacity and have applied for a moratorium on loan repayments from their lenders.

In the coming months of June-September, steel demand will suffer further as monsoon season restricts construction activities. The mills are anticipated to face labour shortage as migrant workers that rushed back to hometowns in the wake of Covid-19 are not expected to return to work sites, as they typically engage in farming activities during the monsoon. Amid this negative outlook, the demand for electrodes in the domestic market is also anticipated to remain dull in the upcoming months.