SAIL Anticipates Minimal Steel Price Increase Amid West Asia Crisis
SAIL expects only Rs 100-200 impact on steel prices despite West Asia crisis
Image: Deccan Herald
State-owned Steel Authority of India Limited (SAIL) expects only a minor increase of Rs 100-200 in steel prices due to the ongoing crisis in West Asia. The company is establishing alternative shipping routes to secure raw materials, primarily limestone, while ensuring uninterrupted operations.
- 01SAIL's Chairman Ashok Panda indicated that the cost of limestone from Dubai has risen from around $23-24 to approximately $35.
- 02The anticipated impact on sellable steel prices is projected to be between Rs 100 and Rs 200.
- 03SAIL sources 100% of its iron ore from captive mines but relies on international markets for coking coal.
- 04The company is focusing on securing raw material availability rather than just cost, by establishing ties with suppliers in West Asia.
- 05SAIL is managing fuel supply challenges by utilizing PNG and creating LPG banks in various locations.
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Steel Authority of India Limited (SAIL) is preparing for only a slight increase in steel prices, estimating an impact of Rs 100-200 due to the ongoing crisis in West Asia. Ashok Panda, the newly appointed Chairman, stated that while the cost of limestone, a key raw material sourced from Dubai, is increasing—from $23-24 to around $35—the overall effect on steel prices remains minimal. SAIL is prioritizing raw material security over price concerns by establishing alternative shipping routes to secure necessary supplies from the region. The company meets its iron ore needs entirely from its own mines but imports a significant portion of its coking coal from countries like Australia and Russia. To address fuel shortages, SAIL has adapted by using PNG in some areas and developing LPG reserves, ensuring that operational challenges will not significantly affect production in the near term.
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The slight increase in steel prices may affect consumers and industries reliant on steel products, but SAIL's measures to secure raw materials aim to minimize disruptions.
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