West Asian conflict to marginally affect SAIL steel prices: Official

In times of crisis, the availability of raw materials rather than their price is key for uninterrupted operations, the SAIL chairman said. File | Photo credit: Reuters

State-owned SAIL expects the ongoing crisis in West Asia to have only a marginal impact on its steel prices and is establishing alternative shipping routes to ensure uninterrupted supplies of raw materials from the region, a top company official said.

The company buys raw materials such as limestone from Dubai, said Ashok Panda, the steel major’s newly appointed chairman.

“As far as SAIL is concerned, we will have some impact in terms of fluxes, limestone etc. that we are buying from Dubai. So landing costs, CFR (cost and freight) costs will go up because it was around $23-24, now it will be around $35,” the official said when asked about the Asia impact.

But overall, for salable steel, its impact will be barely ₹100 or ₹200, the chairman said.

Mr. Panda also said that in times of crisis, the availability of raw materials for continuous operations is key rather than their price, and that SAIL is working to tie up with parties to secure more quantities from West Asia through diverted routes.

“It’s about securing raw materials rather than increasing prices. We are working to bring together stakeholders to get more quantities from the Middle East through diverted routes,” he noted.

Iron ore and coking coal are the two key raw materials used in blast furnace steelmaking. While SAIL meets 100% of its iron ore demand from its own mines, the company sources a large portion of its coking coal requirements from offshore markets such as Australia and Russia.

Limestone, one of the fluxes used in blast furnace steelmaking, acts as an agent to remove impurities such as silica, phosphorus and sulfur from molten iron.

“And in terms of fuel… there were concerns in the fourth quarter, but we got out of that by using PNG in certain locations and setting up LPG banks in other locations. So it won’t be a big challenge for us in the first quarter,” he said.

Published – 31 May 2026 12:00 PM IST