The ongoing slowdown in construction industry and poor demand of steel from other industries has reduced the production of steel in Mandi Gobindgarh and Ludhiana-based steel industries by 60%.
Owners of steel and induction furnace industry in Mandi Gobindgarh and Ludhiana rue that the industry was going through a tough time for the past six months.
President, Punjab Steel Furnace Association, Mahinder Gupta said: "The overall output in the steel industry has deliberately reduced by 60% due to poor demand of steel in the market."
"The ban on mining in state has resulted in stopping construction work and is one of the major factors behind the slowdown. Though, the state government has conducted the auction of mining sites in five districts, the process seems to be an eyewash and will not help in boosting construction industry," he said.
There are around 110 furnace industrial units and 300 steel re-rolling units in Mandi Gobindgarh industrial area, known as the hub of steel industry in state.
President, All India Induction Furnace Association, KK Garg said the production in furnace and steel industry has considerably reduced in the past.
"About 50 induction furnaces units in Ludhiana have a capacity of producing about 2,500 tonnes of steel everyday. However, only about 600-700 tonnes of steel is being manufactured everyday in city," he said.
"The steep-downfall in national Gross Domestic Product (GDP) which reflects the poor condition of all sectors is getting reflected in steel industry too. The poor health of engineering goods industry, auto parts manufacturing industry and other industries which require steel as raw material is getting reflected in the steel industry," he said.