Steel Authority of India Limited (SAIL) is the India’s largest steelmaker and produces a variety of steel and iron products, has released a global tender for purchase of 375,000 MT of imported freshly mined prime quality washed/unwashed hard coking coal to be delivered during Sept’16 to Feb’17. The first shipment of the material to be made in Sept/Oct’16.
Bidders are required to offer the straight coal from single identifiable mine/seam and mention the name of mine and seam during their bidding process. Only the bids received from established overseas coal producers/suppliers will be considered by SAIL.
Specification
Size: 0 to 50 mm
Total moisture (As received basis): 8.0% max
Sulphur (BS 1016-1973): 0.6% max
Volatile matter: 20 to 32%
Ash: 8.0% max
Schedule: The due date of the tender is 14 Jul’16 at 12:00 hrs IST
During FY’16, SAIL consumed 15.6 MnT of coking coal. Out of which, thel major steel maker had imported 87%, or 13.6 MnT, predominantly from Australia; and the rest was sourced domestically.
Coking coal export offers from Australia are being pushed upto some extent by increasing steel production in China. Currently, the offers for Premium HCC and HCC 64 Mid Vol are hovering at around USD 89/MT Fob Australia and USD 86/MT FoB Australia respectively.
In India, consumption of the coal variant is set to increase further as its Durgapur Steel Plant has recently put into operation a renovated coke oven battery.
According to SteelMint Research, during the first half of Jun’16, 1.55 MnT of coking coal was imported into the country. The importers were mainly steel makers, like Tata Steel, Essar Steel, Bhushan Steel, SAIL, and others.
Leave a Reply