Indian state-owned steelmaker Steel Authority of India Limited (SAIL) is seeking a contract for import of 500,000 metric tons of coking coal for deliveries over seven months starting from September this year, a company official said on Wednesday, July 8.
This is first of the series of coking coal import contracts that SAIL is expected to conclude over the next few months to meet its 60 percent increase in requirement of the raw material in the current fiscal year, the official added.
The largest Indian steel producer is in the process of modernizing its steel mills and its hot metal production is slated to increase to 23 million metric tons per year progressively over this year from the current level of 13 million metric tons per year, the official said.
As a result, its coking coal requirement is forecast to increase to 18 million metric tons per year from 11 million metric tons at present, with the steel company expected to be dependent on imports for 75 percent of its coking coal needs.
SAIL is nearing completion of its modernization program for its steel mills which has included installation of new generation blast furnace and pulverized coal injection technology and this has necessitated the search for new overseas coking coal suppliers, apart from those with existing long-term supply agreements, the official said.