Steel Secretary PK Rastogi said that the steel consumption in the current year will be 52 to 53 million tonnes as against 55 tonnes last year. For the 11 month, production is up by 1.3% and the consumption is down by 1% (YoY). He said that demand revival is seen in January-February.
He further said that Coal International Venture Ltd that include Special Purpose Vehicle (SPV), SAIL, RINL, NTPC, NMDC is planning to increase its fund to acquire coal mine abroad from Rs 3,500 crores to Rs 10,000 crore. CIL is looking at acquring coal blocks in five countries which includes Australia, Indonesia, Mozambique, Canada & South Africa.
He said that there is a very good response and they are in talks with several players. SAIL has been unable to renegotiate coal prices with suppliers. Long term cooking coal contract are hurting steel companies though there is significant fall of cooking coal prices. Things are expected to improve by June this year as major cooking coal long term contracts of PSU steel companies are coming to end. The job cuts in steel industries will be very insignificant, he added.
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