Coking coal scarcity hinders Indian steel output
The significant scarcity in coking coal has impacted the Indian steel industry negatively. During the first two months of the current financial year, steel production, particularly in public sector companies, indicated downward trend. The production of Steel Authority of India Ltd (SAIL) and Rashtriya Ispat Nigam Ltd (RINL) declined by over 12% in April-May compared with the same period of last year. SAIL's steel production amounted to 1.47 million tons in the mentioned period, down by 13% compared with the 1.66 million tons recorded in the same period of last year. Among the four plants of SAIL , the biggest loser is Bhiali Steel Plant (BSP), whose production decreased to 553'000 tons in April-May from 671'000 tons in the previous fiscal year. Only Bokaro Steel Plant, which primarily produces flat products, posted a growth of 492'000 tons against 484'000 tons. The production performance in June is also expected to continue at the same progress due to the coking coal crisis. In April-May, hot metal production of RINL also decreased by 19% to 585'000 tons against 697'000 tons in the corresponding period of last year. Coking coal crisis appeared at a time when public sector companies are going to achieve a growth depending on strong demand. SAIL and RINL, which are looking for coal mines abroad, expect the coal crisis to run out at the end of next month.