Indian steel industry faces coking coal shortage
Indian steel industry is facing
coking coal shortage for the second time this year. It is reported that certain Australian companies, which supply raw material to major Indian steel producers have invoked the “force majeure” clause in their contracts.
This situation, which emerged in mid-October, resulted from natural causes such as flooding and caving of mines.
As previously reported by SteelOrbis,
India experienced raw material shortage in March 2004, which resulted in the temporary closure of certain mills or reduction in their
production.
Steel Authority of
India Ltd (
SAIL) officials are reportedly seeking
coking coal suppliers in countries such as
Russia, US and
Canada to overcome the raw material shortage.