Sunday, 21 Aug 2011
BL reported that large Indian steel makers, such as SAIL and TATA Steel, may try to emulate their Japanese counterparts and resort to collective bargaining with global coking coal producers.
Though such plans are still at an initial stage, SAIL has already created a consortium of large players, including TATA Steel, JSW Steel, Jindal Steel and Power Ltd, RINL and NMDC to bid for the Hajigak iron ore mines in Afghanistan.
Mr CS Verma chairman of SAIL said that “We are discussing with large steel makers on the need to have a collaborative approach to negotiate coal prices. Like the Japanese Steel Mills, we should also collectively bargain.”
Mr Verma said that the players were waiting to see how the consortium approach works out in the case of Afghan mines so that it could extend it to other areas.
Coking coal prices hit the roof in the early part of the year following disruption in supplies due to flooding in Australia. The drastic rise in prices had hit the bottomlines of Indian steel makers, who rely mainly on imports to meet their requirements. Coking coal prices, which were ruling at around USD 320 a tonne for the past couple of quarters, have not come down despite normalcy being restored in the Australian mines.
(Sourced from BL)
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