Indian steel majors may unite to bargain coking coal prices

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)

Indian steel and infrastructure firms eying operations in Malaysia

Saturday, 05 Mar 2011

Malaysian media reported that several Indian steel makers and infrastructure companies are mulling setting up operations in Malaysia, with high level talks having been initiated on the matter.

As per report, the Essar Group, Srinathji Ispat Ltd and Sagarasia Group of Companies are seriously considering expanding their operations to Malaysia.

Indonesia’s international trade and industry minister Mr Datuk Seri Mustapa Mohamed said at least three Indian companies have approached him in Delhi to study the possibility of establishing a base in Malaysia.

Mr Mustapa said that "They like Malaysia and find it easy to do business in the country. These companies have done some research on their own and are keen to set up their business in Malaysia.

Mr Mustapa told Bernama that "But there are some issues which we need to clarify. They want to bring in skilled labour, want to know the availability of scrap iron and also the tariffs.”

He added that y diversified Essar was interested in infrastructure, power generation, oil and gas. The other two companies are keen on windmill infrastructure, aluminium ladders used in aircraft and scaffolding and steel-related products.

Mr Mustapa further said that "These companies are even interested in setting up a production base for ASEAN in Malaysia. We told them to come with their specific needs and we will assist.”

(Sourced from BERNAMA)

Price hike by Indian steel majors in offing on February opening

Monday, 31 Jan 2011

BL reported that on the backdrop of rise in iron ore and coking coal prices, Indian steel companies are set to hike prices by INR 1,000 to INR 1,500 a tonne in February.
As per report, some of them such as TATA Steel, JSW Steel and Essar Steel have hinted at a possible increase, there has been no reference to the quantum of the hike.

The report cited Mr Vikram Amin director sales & marketing as saying that “If domestic prices are higher, there is always a chance of cheap imports. At present, international prices are higher.”

Mr Jayant Acharya director sales & marketing of JSW Steel said that costs of raw materials have jumped substantially in the last few months and as a result, steel prices have had to move in tandem with input costs.(sourced:BL)