With Brent crude climbing to around $100 a barrel from $73 since the Middle East unrest began on February 28, India’s core sectors face fresh cost pressure. New Supply and Use Tables from the statistics ministry show petroleum products embedded in intermediate inputs across industries. Iron ore is the biggest standout, with petroleum accounting for 56.7% of intermediate consumption in 2023-24, followed by mining at 56% and land transport at 54.7%, putting multiple supply chains at risk.
India’s steel industry is struggling to scale “green” production because scrap supply is insufficient. Former Steel Secretary Jindal says only about 25% of steel demand can be met through scrap based manufacturing, while declining iron ore quality adds pressure. The government is pushing pilot projects and missions for green steel, supported by an upcoming carbon credit trading system as output rises.
Your news, in seconds
Get the Beige app — every story in 60 words, updated hourly. Free on iOS & Android.
Dry bulk shipping rates have climbed to a two year high, driven by stronger demand for Capesize vessels and a tightening supply of ships. Disruptions in iron ore exports are adding further strain, while the conflict in the Middle East is also lifting freight costs. The combined effect is worsening the cost pressure for exporters and shipping buyers.
State-owned NMDC has increased its iron ore lump and fines prices by Rs 200 per tonne, effective immediately. Baila lump is now at Rs 5,500 per tonne and fines at Rs 4,700, excluding taxes and fees. The move is likely to raise input costs for steel manufacturers and could ripple through downstream pricing.
The government has amended pricing norms for low-grade iron ore types like Banded Haematite Quartzite and Jasper to push greater use. By adjusting prices, it hopes to curb wastage and improve resource utilization while making beneficiation financially viable, helping secure a steadier supply of iron ore for the steel industry.
Swipe through stories, personalise your feed, and save articles for later — all on the app.
