Indian steel industry faces coking coal shortage

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.