High Coking Coal Prices to Raise Steel Prices by INR 4000/MT from Jan’17

The impact of high Coking Coal prices is expected to show from the next month. According to the information received, Indian steel makers are mulling raising prices for both long and flat steel products by INR 4,000/MT from Jan’17 to partially offset the impact of high Coking Coal prices, during the last few months.

To counter the high Coking Coal prices, flat steel producers had already raised their prices by around INR 3,000/MT in Dec’16.

As a matter of fact, 0.9 MT of Coking Coal is required to produce one ton of steel. As a consequence of demand and supply imbalance in India, Coking Coal has to be imported from Australia and South Africa. Despite having a Coking Coal reserve of more than 300 billion ton in India, production constitutes just around 10%, and a large chunk of the reserve remained un-explored.