In an interview to CNBC-TV18, Arun Kumar Jagatramka,
Managing Director of Gujarat NRE Coke said that the steel industry in
the country is all witness serious shortage of both coal and coke, six months
down the line.
“Both coal and coke have a tight demand growth. Hence,
when the demand picks up, six to eight months later, you can see a very serious
shortage of both coal and coke coming,” he said.
Coke demand had been stable because despite the sluggishness
in steel, there is a shortage of coke and it continues. There has not been any
lowering of phase other than within the July to September quarter, when there
was an iron ore mining banning in Karnataka that led to closure of almost all
the steel players. However, since October the domestic demand had picked up.
There are regular export inquiries, from their yields the
steel industry is doing very well this year. And, they have been taking regular
coke charges from us. Coal prices for January have been shuttling at 235, which
are still higher than the prices a year back. This is despite the sluggishness
in the steel.
So, both coal and coke remain tight though the demand growth
is not there. However, when the demand growth would be there, maybe six months
or eight months down the line, when the demand picks up, you can see a very
serious shortage of both coal and coke coming.
Source: Money Control
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