JSW Steel’s pulverised coal imports from Russia up to 10 - 15 per cent of total

JSW Steel – the country’s largest steel maker – has increased its share of pulverised coal imports from Russia to nearly 10 – 15 per cent, up from the previous 2 – 3 per cent; its Deputy Managing Director, Vinod Nowal, told BusinessLine.

Pulverised coal is an important auxiliary fuel used in the blast furnace iron-making.

PCI or pulverised coal injection is a process which involves injecting large volumes of fine coal particles into the blast furnace. It provides auxiliary fuel for partial coke replacement and is seen as an economical as well as environmentally favourable one (by improving blast furnace efficiency).

The coal has been obtained using the Far East route, market sources said.

“Supplies of pulverised coal from Russia are up. Previously it was in the 2 – 3 per cent range of our total supplies and now it is up to 10 - 15 per cent,” he said on the sidelines of an ASSOCHAM event. Nowal is also the Chairman of ASSOCHAM’s National Council on Iron and Steel.

Steel Prices

According to Nowal, steel prices are witnessing a dip over the last few weeks but would see corrections as global economy stabilises. Demand projections for India continue to be in the 6 – 8 per cent range (growth per annum).

“However rising input costs, including that of imported coking coal and petcoke are a worry. If you see, imported coal prices shot up to $700 per tonne post Ukraine – Russia war; and have now corrected to $ 500 per tonne. Even then it is fairly high than what it was say even a year ago. Other inputs like iron ore costs are high still. So there is definitely an impact of this on margin of Indian steel mills,” he said.

European steel prices are down by approximately $ 100 per tonne over the last one month, while in India, hot rolled coil prices are down to Rs 72,000 – 73,000 per tonne versus Rs 76,000 – 77,000 per tonne range in March.

Capex plans

Nowal added that the company’s previously announced expansion plans are on track; which include the 5 million tonne per annum plant that is coming up at Vijaynagar in Karnataka at an estimated investment of Rs 15,000 crore. The plant is expected to be completed by March 2024.

The JSW Steel Vijayanagar Works is the largest single-location integrated steel-making facility in India with a current capacity of 12 MTPA (million tonnes per annum).

The company’s Utkal project in Odisha (JSW Utkal Steel Ltd) has received environmental clearance for the proposed Greenfiled integrated steel plant, of 13.2 MTPA capacity, he added.

The capital expenditure for the integrated steel plant project is expected to be about Rs 65,000 crore including associated facilities (like slurry pipeline, port connectivity, own jetty and so on). The phase-wise work for the project will start soon.

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