Skyrocketing Coking Coal Costs Fuel Steel Price Surge in India, Reveals JSP MD Bimlendra Jha

Swift Rise in Coking Coal Prices Fuels Steel Cost Upsurge in India

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Steel prices in India are on a rising spree, driven by the swift upsurge in the rates of crucial input material, coking coal, shared industry bigwig Bimlendra Jha.

The primary ingredients in steel production are coking coal and iron ore.

India has a rich supply of iron ore, however, for coking coal, steel manufacturers have to look beyond borders, sourcing a whopping 90 percent of their needs from nations such as Australia and South Africa.

"The pricing of coking coal has shot up notably, currently pegged at USD 341 per tonne CFR (cost and freight) India, marking a jump from USD 230 a tonne during June-July 2023," unveiled Jha, the Managing Director of Jindal Steel and Power (JSP), in a conversation with PTI.

The soaring cost of coking coal is propelling a rise in steel prices, leaving the industry with no alternative but to transfer the inflated costs onto the consumers, remarked Jha while addressing queries about the climbing steel prices in India.

According to a market analysis by SteelMint India, the price for a tonne of hot rolled coil (HRC) which stood at Rs 55,200 in June, witnessed a climb, settling at Rs 58,800 this Thursday post price adjustment.

Delving deeper, Jha noted an encouraging surge in steel demand in the market, circling around 7-8 percent.

Post a slump, especially during the monsoon season, the demand for steel is seeing a positive turnaround, he further added.

Steel takes its place among the triumvirate of most utilized metals, and any price fluctuation triggers a ripple effect across the entire value chain.

Source : PTI