Economy

Raw material prices to soften in short term: SAIL

PTI New Delhi | Updated on March 15, 2011

coal

State run SAIL today said prices of vital steel-making raw materials like coking coal and iron ore are expected to soften in the short term due to the devastation caused by the tsunami in Japan.

“The demand of coking coal will be about 10 million tonnes less monthly (due to impact of tsunami on Japan). So there will be some impact on prices. It has to be contained and should come down,” Steel Authority of India (SAIL) Chairman, Mr C S Verma said here on the sidelines of a steel conference.

“There must be some impact on iron ore prices as production from Japanese steel companies are expected to come down in next 1-2 months,” he added.

Mr Verma, however, refused to give any projection on how much raw material prices may decline in near term. “In any case, the coking coal prices at current levels of $300 plus are not sustainable,” he said.

The SAIL chairman also said that Indian steel companies will be ready to export if Japan imports steel as part of its rebuilding exercise.

“They are yet to make a proper assessment of the losses. Let them recover and then these things can be discussed,” Mr Verma added.

Published on March 15, 2011

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