Mumbai: “Metallurgical coke maker Gujarat NRE Coke has not signed any fresh orders for exports in 2009 on poor demand, but hopes the scenario to become clearer by February,” a senior official said.
“Chinese New Year will start now. Most westerners are coming out of their Christmas, New Year vacations. I think, the picture will become clear in February,” P.R. Kannan, chief financial officer said adding: “We’ll have to see if plants worldwide resume full production and when.”
“The miner has pending orders of up to 100,000 tonnes of metalurgical coke, used in making steel, which it had contracted to sell at $500 per tonne,” he said.
“We have three orders from last year — up to a lakh tonnes. We are waiting for letters of credit from banks. Without that we do not ship,” he said.
Kannan said that the funding situation has improved and banks are more willing to open letters of credit than they were in the previous quarter.
He further said that steel makers globally had announced production cuts last year to avoid excess inventory as demand slumped, but they will review the situation this year, adding Gujarat NRE did not slash output last quarter due to ‘enough’ demand for coke.
At 11:57am, shares in the firm were down 12.79% at Rs27.95 in a weak Mumbai market.