Indian producers prefer Australian coal

Indian producers prefer Australian coal

Steel companies in Asia reportedly try to make deals with Australian mining companies to supply coal, as coal prices have increased remarkably since the beginning of 2003. As previously reported by SteelOrbis, Japanese Nippon Steel, Shanghai Baosteel Group and many other Japanese steel makers had made deals with major Australian mining companies, such as Rio Tinto and BHP Billiton. It is stated that, Indian companies are in negotiation with Australian companies to make deals with the purpose of having stable source of coal. Moreover, Indian steel companies prefer Australian metallurgical coal as it has lower ash content. One of the Indian companies that is on the verge of signing deal with an Australian firm is Jindal Iron and Steel. An official from the company stated that they prefer Australian mines as they believe that they will guarantee stable source of coal. It is also stated that Steel Authority of India Ltd (SAIL) is planning to make deal with an Australian mine with the purpose of establishing a joint venture company to supply coal. Another Indian steel maker Tata Iron and Steel Corp (TISCO) announced that they depend upon their own coal for the time being however they may make deal with Australian mining companies in the future.