Coal shortage forces India’s steel cos to pay 4 times the normal cost: Report
A coal shortage in India has led to soaring costs for steel producers as they compete with other industrial consumers for supply.
Mills are paying more than four times the normal costs for procuring coal from e-auctions and from mines, according to VR Sharma, managing director at Jindal Steel & Power Ltd. Still, there has been no impact on production at most primary steel producers yet as they have adequate supplies and are unlikely to curtail output, he said.
India, which relies on coal for about 70% of electricity generation, is grappling with a shortage after a jump in demand, a squeeze on domestic mine output and surging prices of seaborne supply.
