The shortage of coal and rising prices are impacting India's steel and sponge iron industries, which rely heavily on imported coal. Limited domestic coal availability, prioritised for the power sector during the summer, has further strained the industry. Monsoon rains have disrupted coal transport, leading to critically low inventories at power generators. The elevated sponge iron prices may persist for the next few months, affecting production costs and potentially leading to higher prices for downstream steel products.