India's steel sector faces a production crisis as companies slash output due to industrial gas shortages and shipping disruptions from West Asia conflict.

India's steel sector faces a production crisis as companies slash output due to industrial gas shortages and shipping disruptions from West Asia conflict. Major producers including Jindal Stainless have cut plant capacity as propane and LNG supplies tighten, with prices surging seventeen percent. Raw material imports from Oman and UAE face delays while freight costs spike, squeezing margins across the industry. MSME steel manufacturers report operating at fifty percent capacity, with production losses reaching eight to ten thousand tonnes. Steel prices have jumped two to twenty five hundred rupees per tonne as energy and logistics costs mount. Shipping bottlenecks in the Gulf region are delaying export cargoes to West Asia and Europe, threatening secondary steel units nationwide. Industry associations have alerted the ministry of steel about the operational impact.