The steel sector, which is important for building things and making things, just hit a hitch. India, one of the world’s largest manufacturers of steel, has postponed the Global Steel Conference, which was supposed to take place in Mumbai in mid-April. Why? The escalating conflicts in the Middle East are already causing travel disruptions and raising concerns about energy availability. When conflicts erupt across the globe, their effects are felt in our companies and manufacturing processes. The current situation clearly shows how fragile our interconnecte`d world is.
It’s not just the timetable that’s the issue.
The meeting was advertised as a big deal, and it brought together steel executives, legislators, and tech entrepreneurs from more than 50 countries. It’s now delayed, perhaps until late May or June, and it’s making everyone reassess their plans in what experts are calling a “perfect storm” of global concerns. India has a lot at stake because steel production is important for everything from skyscrapers to electric cars. What does this mean for an industry already grappling with soaring costs and the push for sustainability?
Let’s take it apart.
The Spark: The Middle East Crisis Messes Up Travel and Trade
It all started with more and more fights in the Red Sea area, where Houthi strikes on maritime lines have made the important waterway off-limits to many ships. Airlines aren’t doing much better. Emirates, Qatar Airways, and Etihad, three of the biggest airlines, have cut back on flights to and from India because of safety concerns and limits on airspace. Last week, an airline executive told people in the business, “We can’t risk passenger lives or cargo delays.”
This caused a lot of trouble for the steel meeting. Delegates from the Middle East, Europe, and even some regions of Asia had to deal with canceled flights and rising fees for rerouting. The Indian Steel Association (ISA) and other organizers said in an official statement that “unforeseeable travel difficulties” were to blame. But there’s more to it than that; energy uncertainty is a big deal. Steel production uses a lot of energy, and fighting in the Middle East could cause oil and gas prices to rise. In only the last week, the price of Brent crude rose 8% to $92 a barrel. India gets around 85% of its crude oil from this area. If the problem lasts for a long time, it might raise expenses for steelmakers like Tata Steel and JSW Steel.
If a drone strike or blockade happens, your blast furnaces could suddenly stop working or the price could go up. If shipping channels are blocked, Indian steel exports, which reached 7.5 million tonnes last fiscal year, could take a direct effect.
A Giant Under Pressure in India’s Steel Industry
India’s steel story is one of desire. The National Steel Policy said that the country should make 300 million tonnes by 2030. In 2025, it made 143 million tonnes. It is the second-largest producer in the world, after China, and it fuels huge projects like the Delhi-Mumbai Expressway and renewable energy farms. But there are still weaknesses.
Problems with raw materials: Coking coal imports from Australia and Russia are more expensive because of worldwide rerouting.
Energy crisis: If supplies from the Middle East get tighter, gas prices in the US might go up by 15% to 20%.
Export problems: The EU and US, two important markets, charge green tariffs, and shipping delays can add weeks to delivery.
The conference was supposed to deal with these issues directly. There were sessions on “decarbonizing steel” and “trading in tumultuous times” that promised to make progress. People are talking about virtual alternatives now, but nothing matches making deals in person. “Steel is a business based on relationships,” says Rajesh Nair, a 25-year senior consultant in the field. “When billion-dollar contracts are on the line, Zoom calls won’t work.”
How the Steel World Feels the Delay Around the World
This isn’t just happening in India. The steel conference is similar to what happened last year at the World Steel Dynamics event in the US, which was put off because of problems with the supply chain. Steel prices have gone up 5% over the world since tensions in the Middle East reached their peak. Hot-rolled coil futures on the London Metal Exchange have risen to $680 per tonne.
Big players are keeping a careful eye on:
Baosteel from China is the conference’s platinum sponsor. They have their own export restrictions, but they rely on collaborations with Indian companies for downstream products.
ArcelorMittal in Europe is worried about a lack of LNG because their operations get gas from the Middle East.
Companies in the US, like Nucor, are looking at India’s ability to make up for slowdowns at home.
The effect is real in India. Maharashtra, the state where the event is taking place, stands to lose millions of dollars in tourism and hospitality earnings. Mumbai’s hotels were full, and events like steel tech demos were planned to demonstrate off hydrogen-based industrial trials. Small businesses, from metal merchants to logistics companies, are now fighting for cash flow.
And what about the workers? More than 2.5 million people work directly in India’s steel factories. If things stay unsettled for too long, hiring could stop or get worse. One mill manager in Jamshedpur said anonymously, “We’re already functioning at 80% capacity.” If energy prices go up, layoffs are a possibility.
The Hidden Threat to Steel’s Future: Uncertainty About Energy
If you look more closely, energy is the real wild card. Steel smelting takes a lot of energy—14 to 16 gigajoules per tonne. India’s push for green steel depends on cheaper renewable energy sources like hydrogen, but for now, fossil fuels are what keep the lights on.
The turmoil in the Middle East makes this worse. Iran and Saudi Arabia are having proxy wars, and Yemen’s Houthi rebels are causing problems, which is keeping LNG ships from moving. Last month, India’s Petronet LNG said that spot cargoes fell by 10%. If prices go up, steelmakers might pass those costs on to customers. This might mean higher pricing for cars, appliances, and even bridges.
But for some, there is a silver lining. Coal India might fill in the gaps with domestic coal, and mini-mills driven by solar energy are becoming more popular. The conference was supposed to announce a $2 billion green steel fund that would be supported by Indian banks and the Asian Development Bank (ADB). The event was delayed, but not canceled. Organizers promise to start over with an even greater focus on resilience.
How ready is India, really? Have we learned from prior oil crises, or are we just going to sleepwalk into another problem?
Voices from the Industry: Real Talk About the Delay
People who are involved aren’t holding back. Alok Sahai, the president of the ISA, said it was a “prudent move,” but he also asked the government to step in and lower freight prices. He added in a press conference, “We need insurance subsidies for high-risk routes.”
Tata Steel’s VP of operations, speaking off the record, talked about changes to the supply chain: “We’re diversifying ports—Vizag over Mundra—to avoid backlog in the Red Sea.” On the other hand, JSW Steel is increasing the use of electric arc furnaces that use scrap metal instead of coal.
POSCO from South Korea said they were disappointed but hopeful about the situation. Their spokesman said, “India’s market is too enormous to overlook.” Even though virtual panels start this week, people are already talking about them. Topics like AI in predictive maintenance are very popular.
But it’s harder for small and medium-sized businesses in India. “We prepped demos for overseas consumers,” said a fabricator from Pune. Who is paying for the storage now? People in Delhi are talking about government help, including duty-free imports.
India puts off the Global Steel Conference because tensions are rising in the Middle East.
