Tata Steel is looking at alternative markets for coal imports as Russia-Ukraine war rages on
Kolkata:
Amid the ongoing Russia-Ukraine conflict, Tata Steel Limited is looking at alternative markets for coal imports as uncertainty prevails with its Russian suppliers and bankers.
Tata Steel’s managing director T V Narendran said on the sidelines of an industry event in Kolkata on Saturday, that the geopolitical situation after Russia’s invasion of Ukraine has also opened up steel export opportunities in Europe, following a supply vacuum of 45 million tonnes for the metal left by Russia and Ukraine in the continent.
Therefore he informed that Tata Steel will look at alternative markets for coal imports to de-risk. “There are a lot of uncertainties with Russian suppliers and bankers at present,” Mr Narendran said.
The steelmaker used to buy 10-15 per cent of its coal requirements from Russia for use in pulverised coal injection, he said.
Pulverised coal injection (PCI) is a process that involves injecting large volumes of fine coal particles into a blast furnace.
“For our Europe operations, we have to buy more from North America and India buys coal mostly from Australia,” he said.
The 45 million tonnes supply vacuum left by Russia and Ukraine also opened up export opportunities for Indian steel producers, resulting in spot prices going up by 1,000 euros, the Tata Steel head said.
Tata Steel will look at exporting more to southern Europe, as compared to Asian markets for better margins, he added.
Exports from Tata Steel Europe could cross one million tonnes in 2022-23, while Indian operations could ship out around 15 per cent of its output, Mr Narendran indicated.
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