- Major steel plants auction 20,000 t of crude coal tar
- Transparent auctions boost coal tar availability across sectors
Coal tar, a byproduct of coke production during the manufacturing of steel, plays a critical role in various industries, including aluminium smelting, road construction, wood preservation, and dye manufacturing.
Market size & applications – As per sources, India’s monthly crude coal tar production stands at around 100,000 tonnes (t), creating an annual market size of approximately 1.2 million tonnes (mnt).
Its high demand stems from its versatile applications, where it is used as a key component in producing materials like paints, preservatives, and even pharmaceuticals.
Steel plants with recovery coke oven units are the primary producers of crude coal tar, and these units are essential for refining and distributing the material for industrial use.
By auctioning large quantities, companies like SAIL, NMDC and RINL are ensuring a steady supply of crude coal tar, essential for supporting the growth and functioning of industries that rely on this byproduct.
Recap of coal tar auctions held in March – Below are the details of the crude coal tar auctions monitored by BigMint. In March, significant auctions took place, driven by major players in the steel industry such as Steel Authority of India Limited (SAIL), National Mineral Development Corporation (NMDC) Steel Limited, and Rashtriya Ispat Nigam Limited (RINL).
SAIL’s steel plants – Bhilai, Bokaro, Durgapur, IISCO, and Rourkela – offered around 16,175 t of coal tar, reflecting the company’s substantial contribution to the market.
NMDC Steel Limited and RINL followed suit, auctioning 2,500 t and 1,680 t respectively.
The ongoing auctions are not just a commercial activity but also an effort to meet the increasing demand for coal tar in critical sectors. Auctions provide a transparent and competitive platform, allowing buyers to procure the material based on current market conditions.
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