West Asia Crisis Slightly Affects SAIL's Steel Cost

SAIL anticipates minimal effects on steel pricing from the West Asia conflict, seeking alternative shipping routes for raw material supply. Limestone costs from Dubai will increase, but overall steel price impacts are expected to be minor.

SAIL, a state-owned steel company, forecasts that current turmoil in West Asia will cause only a slight uptick in its steel prices. To maintain a steady flow of raw materials from the region, SAIL is setting up alternative shipping routes, according to a senior company official.

Ashok Panda, SAIL's newly appointed chairman, mentioned that materials like limestone sourced from Dubai may face increased CIF and freight costs. Despite this, the estimated rise in SAIL's steel prices will only amount to around Rs 100-200.

Panda added that securing a steady supply of raw materials is more critical during such uncertain times than price increment. The company is negotiating to secure more volumes from the Middle East through alternative routes. SAIL, which meets all its iron ore needs from captive mines, still relies on overseas markets for much of its coking coal.

In response to fuel supply concerns experienced earlier, the company has started utilizing PNG at some sites and developed LPG reserves at others, mitigating potential challenges for the coming quarter.