JSPL expects steel prices to rise due to severe coal shortages

Leading steelmaker Jindal Steel and Power Limited (JSPL) expects steel prices to continue to rise in the coming months, mainly due to a shortage of coal, which is mainly used by domestic steelmakers to generate electricity for steelmaking.

It is estimated that the country consumes about 1,200 million tons of thermal coal per year. The steel industry alone consumes about 150 million tons of coal annually. State-owned Coal India Limited (CIL) production is only 800 million tonnes, indicating a shortage of nearly 400 tonnes. The domestic steel industry depends on CIL for nearly 80% of its coal needs.

The JSPL stressed that CIL needs to increase production to at least 100 million tonnes per month to fully meet the country's overall coal demand. The increase in production will not only ensure price stability, but also reduce dependence on imported coal.