#demandrecovery

[indianpetroplus1]

Morbi gas demand recovery: risk removal triggers rapid industrial restart

The sharp rebound in industrial activity across Gujarat’s ceramic hub shows how Morbi gas demand recovery is being driven more by risk management than demand fundamentals. According to Indian Petroplus analysis, the restart was triggered not by improved market conditions but by restored fuel certainty.

The Morbi gas demand recovery followed a near shutdown phase where gas supply volatility and pricing uncertainty forced large-scale production halts. Once supply assurance and short-term price visibility were introduced, idle capacity returned rapidly.

This response highlights a critical shift where operational predictability becomes more important than input cost levels. Even with broader cost pressures still present, units resumed operations as soon as fuel risk was mitigated.

The speed of Morbi gas demand recovery suggests that industrial demand in gas-dependent clusters is highly sensitive to uncertainty rather than just pricing.

This makes risk management, rather than affordability alone, a key lever in sustaining industrial gas consumption, Morbi, Gas Demand, Demand Recovery, Industrial Gas India, Ceramic Industry, Gujarat Industry.

[growthpossible]

Infrastructure spending to push 'base metals' prices higher in 2021

Robust demand recovery amid gradual supply increase is expected to push base metal prices higher on a year-on-year basis in 2021. However, increasing environmental concerns and emission targets are likely to lift the global cost curves across metals. "Geo-political relations and currency movements are also likely to be the key drivers for metal prices," India Ratings and Research (Ind-Ra) said in a report. "The current strong global commodity demand is stemming from a continued strong Chinese demand while other economies are also making a comeback from the pandemic-related impacts." Notably, China which has a lion's share of global consumption of key commodities is likely to witness a strong demand over 2021 on back of a continued government-led infrastructure spending. "The global commodity demand improvement will be balanced by gradual capacity additions, although intermittent lockdowns in certain producing nations would cause temporary disruptions." "Also, sustainability and decarbonisation efforts are likely to lead to capacity curtailments." In addition, it said that logistical and supply chain management remains an issue and also supports cost inflation. "However, the tight demand-supply equation in 1H21 is likely to ease in 2H21." --IANS rv/sn/skp/(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.) Read the full article