SAIL to get coking coal from Russia | Mint
Active Stocks
Wed Feb 21 2024 15:59:55
  1. Tata Steel share price
  2. 143.85 1.99%
  1. Bharti Airtel share price
  2. 1,139.75 -0.38%
  1. State Bank Of India share price
  2. 771.55 1.51%
  1. Power Grid Corporation Of India share price
  2. 280.15 -2.71%
  1. ITC share price
  2. 403.30 -0.68%
Business News/ Industry / Manufacturing/  SAIL to get coking coal from Russia
BackBack

SAIL to get coking coal from Russia

The company is looking to bring in 3,00,000 tons of coking coal by the end of this quarter (July – Sept), Amarendu Prakash, Chairman of SAIL, told Mint on the sidelines of the Indian Steel Markets conference here today.

A motorcyclist rides past an advertisement of Steel Authority of India Ltd. (SAIL) at a street in New Delhi (Reuters)Premium
A motorcyclist rides past an advertisement of Steel Authority of India Ltd. (SAIL) at a street in New Delhi (Reuters)

New Delhi: State-owned Steel Authority of India Ltd (SAIL), the largest steel producer in the country, is ensuring it has adequate coking coal stock through imports from Russia and will complete imports of 300,000 tonnes from Russia by the end of this month.

The company is looking to bring in 3,00,000 tons of coking coal by the end of this quarter (July – Sept), Amarendu Prakash, Chairman of SAIL, told Mint on the sidelines of the Indian Steel Markets conference here today.

“It is a continuous thing; we buy from them continuously. Recently, I believe, in the last quarter, we had taken 6 ships from that translates to 3 lakh tons," he added. Last quarter, the company imported three ships with 75,000 tons of coking coal each and is in the process of completing the import of four more.

Considering this, the company through its SPV, a joint venture between PSUs, International Coal Ventures Private Limited (ICVL) is also looking to double up the capacity of the Benga coal mine in Mozambique, the chairman added. At present, ICVL has a 2 MTPA (million tonnes per annum) capacity.

“Right now, importing from Russia has proven to be a lot cheaper as compared to importing coal from other nations," Prakash added when asked about the cost of importing from Russia as compared to Australia. “Geographically we are trying to diversify our sourcing, we have long-term suppliers from Australia, and now we have long-term suppliers from Russia," he added.

While SAIL continues import its requirements from Russia, data from S&P Global Commodities at Sea shows India's imports of Russian coal between May 22 and July 23 slipped to 5.6 million mt from 6.1 million mt as compared to the similar period a year ago. In contrast, Russia and Turkey have registered increase in imports from Russia during the same period.

The company has been working with Australia, Indonesia, and Mozambique to secure coking coal. But prices of premium hard coking coal (PHCC) from Australia have been showing a sharp increase due to limited supply as some of the mines down under have suspended their operations. Issues compounded as the Indian mills consistently bid in order to stock up ahead of post-monsoon demand upturn.

Concerned about the rising prices, Prakash said that the proliferating prices of coking coal have been a direct hit on the company's margins. The import of cheaper coal from Russia helps provide that cushion to the steel major.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Industry News, Banking News and Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More Less
Published: 28 Sep 2023, 10:51 PM IST
Next Story footLogo
Recommended For You
Manufacturing Stocks
₹511.80.02%
ITC
₹406.05-0.68%
₹2,940.75-0.09%
₹141.051.99%
Switch to the Mint app for fast and personalized news - Get App