Indian Stainless Steel Development Association: There will be problems with stainless steel exports under the Russian-Ukrainian crisis
Prices of commodities and raw materials, including coking coal, will rise steadily amid the Russia-Ukraine crisis, which will, in turn, affect input costs for steel production, the Indian Steel Association said on Friday. ISA said   On the other hand, Russia and Ukraine are both net exporters of steel, with a cumulative export volume of nearly 40 million tons, which will affect the international steel supply.
Metallurgical or coking coal is an important ingredient in the steelmaking process.   “The current situation is already reflected in the increase in oil and gas prices, leading to higher energy costs. In addition, the prices of commodities and raw materials will also rise steadily.
“For example, coking coal prices have started to rise further and are already at high levels. This, in turn, will affect the input cost of production,” Alok Sahay, secretary-general of the Indian Iron and Steel Association, told PTI.   KK Pahuja, chairman of the Indian Stainless Steel Development Association (ISSDA), said that India is currently exporting stainless steel worth US$200 million to Russia, and there will naturally be problems with material exports during the current crisis.
And, more importantly, no matter what material is already in transit or being exported, payments can get stuck…I think $70-80 million is stuck at any given time. So there is uncertainty as to what to do with the money that will come to fruition. It’s a field,” he said.
Second, it is expected that other countries in China may also export to Russia, and these materials will also be blocked. Therefore, materials from Europe or other parts of Asia that will become surplus will also try to find markets in countries such as India, where they may be diverted, he added.
“It’s a concern … if exports from the rest of the world are affected, then the material might try to find alternative markets like India, where we might have an oversupply,” he said.
On Thursday, Russia launched military operations against Ukraine. Meanwhile, EU leaders are uniting the front and agreeing to impose a second set of economic and financial sanctions on Russia.
