Market Shock: Raw‑Material Scarcity Hits Coimbatore MSMEs
Small and medium manufacturers in Coimbatore are facing tighter supplies of steel, copper and aluminium, with price spikes that jeopardise production schedules. The squeeze stems from higher import duties, port‑logistical bottlenecks and a surge in global demand for finished steel. For forging‑focused OEMs, the immediate effect is a thinner buffer of medium‑carbon grades such as EN8 and C45, which are traditionally used for gearbox housings, shafts and couplings.
Because many of these firms rely on open‑die forging and ring‑rolling, the shortage of suitable billets forces them either to seek alternative suppliers or to shift to higher‑cost alloy grades. The price pressure also accelerates a move toward domestic sourcing, where lead‑times can be more tightly controlled.
Industry Response: Diversifying the Supply Base
Manufacturers are widening the range of steel families they consider to mitigate risk. The carbon‑alloy spectrum offered by Indian producers now includes more readily available grades like C45 carbon steel for medium‑strength applications and EN8 carbon steel for high‑tensile needs. In parallel, firms are exploring continuous‑casting solutions that deliver a consistent cross‑section for ring‑rolling, cutting waste and machining time.
Kesari Alloys Perspective
For a forging‑grade steel supplier such as Kesari Alloys, the Coimbatore shortage underscores the value of a diversified product portfolio. Its forging ingots line spans carbon, alloy and stainless grades that can be customised for open‑die, ring‑rolling and upsetting processes, giving buyers flexibility when specific billets are scarce. Likewise, the company's continuous cast billets and blooms enable customers to maintain a steady feedstock for high‑volume ring‑rolling, while the rolled bars option supports shafting and other machined components without a separate rolling contract. Buyers should therefore assess supplier capability across ingots, billets and bars to ensure continuity of supply and cost‑effective inventory management, especially in a market where government policy can quickly shift material availability.
