West Asia tensions push up costs for India’s steel industry, says Tata Steel MD T V Narendran

The ongoing geopolitical tensions involving Iran and the United States in the West Asia region are beginning to weigh on India’s steel sector, primarily through rising logistics and input costs. Tata Steel Managing Director T V Narendran on Wednesday said the conflict has pushed up freight and insurance rates, increasing the overall cost burden for steel producers and related industries.

According to Narendran, while steel production itself has not yet been directly impacted, the ripple effects are being felt across the entire supply chain. He noted that higher shipping charges and insurance premiums are adding to operational expenses at a time when manufacturers are already navigating fluctuating raw material costs.

In addition to freight costs, Narendran highlighted supply constraints in key fuels such as LPG and LNG, both of which are critical for industrial operations and downstream processing units. The increased cost of these fuels is adding further pressure on steel makers and their customers, especially fabrication units that rely heavily on stable input pricing.

The impact is not limited to primary steel producers. Downstream manufacturing segments, including fabrication and engineering units, are also facing margin pressure due to rising costs. Narendran said some customer segments are finding it difficult to absorb the increase, which could eventually influence project execution timelines and pricing in infrastructure and construction sectors.

On the long-term outlook, the Tata Steel MD also pointed to discussions held with the Odisha government regarding the future growth roadmap of the steel sector in the state. Odisha currently produces around 27 million tonnes of steel annually, and the industry is working toward scaling this to 100 million tonnes through coordinated efforts by multiple steel companies.

The discussions, organised by the Indian Steel Association, focused on identifying infrastructure and policy bottlenecks that may hinder future capacity expansion. With major players such as Tata Steel and Jindal Steel participating, the meeting underlined Odisha’s strategic role in India’s steel growth story.