A shortage in supply of coal is feared due to the ongoing crisis between Ukraine and Russia which has put upward pressure on Coal prices.
International prices for thermal or hard coal topped $420 per tonne before easing back to about $316 per tonne last week. Coking coal rose from $350 to $650 per tonne.
Coking coal is used to create coke, one of the key irreplaceable inputs for the production of steel. Indian steel companies import around 80% of their coking coal requirements. The prices have gone through the roof globally due to the ongoing conflict.
“Robin Griffin says that if there are no coal exports from Russia, there would be a massive deficit for the commodity for the next two years.
To replace Russian coal supplies is impossible. It takes up to 2 years before the world replaces Russian coal supplies. This is assuming there would be no demand"
How do you think this would impact the Indian steel companies and the industry as a whole? And what alternative sources/measures can be relied upon to meet the demands?
