The West Asia conflict is exposing India’s steel energy security risk in Commodity News 25/04/2026 India imports a large share of its crude oil, Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG) through a region that remains vulnerable to geopolitical disruption, with its energy security heavily exposed to instability in West Asia, and critical routes such as the Strait of Hormuz. That risk is now shifting into the steel sector as well, where fuel shortages, shipping disruptions and rising input costs have started to affect operations. Indian steelmakers are already feeling the pressure as they worry about tightening gas supplies and the wider impact of the conflict on their cost base. The fuel disruption is not limited to one part of steelmaking. LNG shortages are affecting gas-based ironmaking operations, while LPG shortages are disrupting stainless-steel processes. India’s small steelmakers, who are dependent on LNG, have been facing production cuts as supplies tighten due to the conflict. Some producers warned that output could be cut sharply if fuel supplies do not normalise. The disruption is not limited to smaller firms. The gas shortages have affected some JSW steel units, with one unit at risk of shutdown due to supply constraints. Given the circumstances, JSW had asked the Indian government to intervene to address gas shortages affecting steel operations. ArcelorMittal Nippon Steel (AMNS) India is also exposed due to its significant use of gas-based direct reduced iron (DRI). Around 65% of the company’s 9Mtpa steelmaking capacity is linked to gas-based DRI and electric arc furnace operations. Meanwhile, Jindal Steel has started using syngas in some furnaces to manage shortages of natural gas and LPG, highlighting the growing importance of fuel flexibility. Further, rising oil prices are pushing up input costs. Industry experts suggest that this crisis could drive up input cost inflation for steelmakers as higher crude prices are pushing up fuel and freight rates. The disruption has also affected freight movement through the Strait of Hormuz, tightening supplies of industrial fuels and other steelmaking inputs. In response, the government has increased commercial LPG allocation and extended relief to selected priority industries, including steel, where fuel substitution is limited. However, no similar steel-specific relief has yet emerged for LNG-linked operations. Metallurgical (met) coal energy security risk increases further as freight cost rises The ongoing conflict has once again highlighted a major energy security risk for India’s steel sector: its heavy dependence on imported met coal (coking coal). India imports around 90% of its met coal requirements, majorly from Australia, exposing steelmakers to global supply and price volatility. The market was already volatile, and the current conflict is now making that dependence even riskier. Australian premium hard coking coal prices in January 2026 hit a 17-month high, as heavy rains and flooding in Queensland disrupted mining operations. As Australia dominates the global met coal supply, this event reflected supply disruption and stronger price pressure globally. Moreover, as the conflict started to worsen, global coking coal prices rose again in the second half of March, adding to cost pressure on steelmakers. This matters because India’s steel production – and new capacity project pipeline – is still dominated by coal-based blast furnace routes and even some co