Indian domestic steel prices are expected to continue rising as producers are buying coal at three times the price compared to a month ago, Jindal Steel and Power Limited (JSPL) CEO V R Sharma said on Thursday, October 7.
“Shortage of coal has led to an increase in its prices that will have an impact on steel which may also go up due to this unprecedented rise," he said.
One metric ton of coal which was priced in the range of INR 4,000-6,000/mt ($54-81/mt) a month ago is now costing INR 8,000-12,000/mt ($108-162/mt), he said.
The domestic steel industry consumes about 180 million mt of coal per year and is dependent on state miner Coal India Limited (CIL) for 80 percent of their requirement.
“CIL is asking the steel companies to come through e-auction to buy the coal. One month earlier, per mega/cal of coal was around INR 1. On Tuesday, it was INR 2.80 per mega/cal, nearly three times higher," Sharma said, while he declined to make any forecast for steel prices in the coming months.