State-owned Steel Authority of India Limited (SAIL) anticipates only a slight increase in steel prices due to ongoing crisis in West Asia. The company's newly appointed Chairman, Ashok Panda,emphasized that SAIL is actively establishing alternative shipping routes to maintain steady supply of essential raw materials from the region .
SAIL sources various materials,including limestone from Dubai. Panda noted that while the cost of these materials is expected to rise—from approximately $23-$24 to around $35 per ton—the overall effect on steel prices will be minimal,estimated at just ₹100 to ₹200 per ton.
In addressing the crisis, Panda highlighted the importance of securing raw materials over their cost. He stated,"It is more of a raw material security than a price increase." The company is exploring partnerships to increase its supply from the Middle East through alternative routes,ensuring uninterrupted operations during this challenging period .
Iron ore and coking coal are critical to steel production SAIL meets all of its iron ore needs through its own mines,but relies heavily on international markets for coking coal,primarily from Australia and Russia. company is also adjusting its fuel strategies,having successfully transitioned to using piped natural gas (PNG) in certain areas and establishing liquefied petroleum gas (LPG) reserves elsewhere. Panda expressed confidence that fuel availability will not pose a significant challenge in first quarter.
As the situation in West Asia evolves, SAIL's proactive measures aim to mitigate potential disruptions. The company remains focused on maintaining its production levels while navigating the complexities of global supply chains.
