The global steel industry, including India, is expected to face multiple market-related issues in the coming days as the escalating crisis in West Asia impacts fuels cost that has lead to increased freight rates, according to BigMint Research.
BigMint analysts said crude oil, LNG, and freight costs are rising simultaneously, transmitting cost pressure directly into steel and steel-related commodity markets.
From an average of $70 a barrel before the war, crude oil prices have risen to about $90/per barrel, an analyst said, adding that the cost is expected to continue to rise in the coming days.
War has also impacted freight cost, which jumped almost 40% in recent times. In the absence of insurance cover, marine operators are also offering freight at non-negotiable prices as per the availability of the vessel.
On the impact of the U.S.-Iran conflict on steel markets, including India, they said the industry would face sustained input cost inflation across coal, scrap and ore, with freight and energy reinforcing one another.
-PTI