Expecting the states of Goa, Orissa and Jharkhand treading
towards a mining ban like in Karnataka, RK Goyal, manging director of Kalyani
Steel says it is the impact of this 'artificial scarcity' due to the
mining ban, which is making it tough for the entire steel industry in
the country.
“All steel plants are bleeding at this point in time.
Hence, there is no relief, until the Supreme Court resolves issues related to
illegal mining and at least permits legal mining,” says Goyal.
Speaking about the iron ore e-auctions, Mr. Goyal said, “We
are still buying iron ore at a price 40-50 % higher than what it used to be
before the ban. So iron ore prices are high, there is definitely some softness
in the prices of coal but it doesn’t compensate the price increase in iron ore
and at the same time we can't run a steel plant by buying just material from
e-auction”.
It is becoming difficult for steel industry to operate in
Karnataka, particularly. Now it has impact in other states because there too
the prices of iron ore are hardening. Hence, it is going to be tough for the
steel industry in the country until Supreme Court resolves the issues related
to illegal mining and at least permits legal mining.
The Next e-auctions are scheduled on October 29 but issues
related to transportation and preparation of permits are few reasons which might keep the participation less in the e-auctions.
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