The ongoing conflict involving Israel, United States, and Iran is significantly impacting industrial activity in Ahmedabad, with steel-related businesses facing sharp declines in production, rising costs, and supply disruptions.Industries dependent on steel scrap—such as foundries, pipe manufacturers, and processing units—are struggling due to shortages of commercial LPG, industrial gases like argon, and raw materials. Industry estimates suggest monthly output in the region has dropped from around ₹1,000 crore to nearly ₹400 crore.Manufacturers report up to a 50% fall in production due to limited availability of essential fuels and gases.
Exports have also taken a hit amid global uncertainty, while input costs have surged by 20–25%, further straining operations.Supply chain disruptions have worsened the situation, with fewer cargo shipments arriving as the conflict enters its fifth week. Industry experts warn that if the crisis continues, migrant workers may begin returning to their home states, further reducing production capacity.
The instability has also dampened business sentiment at the start of the financial year, usually a peak demand period. Frequent price fluctuations have made manufacturers hesitant to accept new orders, as raw material costs continue to rise almost weekly.
Imported steel scrap has become scarce, leading to a 30–40% increase in prices of locally sourced materials. Despite losses, many traders are still fulfilling existing contracts.Industry stakeholder Pathik Patwari said steel prices have risen by over 15% per tonne due to higher fuel costs, warning of tougher times ahead if the conflict persists.
Manufacturer Paresh Patel highlighted that production is severely constrained due to LPG shortages and rising raw material costs.Sagar Shah noted that units which earlier required 12 LPG cylinders daily are now receiving only two to three, leading to a 30% drop in operations and forcing businesses to complete old orders at a loss.
Another industry player, Tarachand Jain, said rising input costs have made it difficult to take on new orders, with steel and iron prices up by around 30% and aluminium costs increasing by 40%.