Indian steel-makers debt reduction plans may be slowed down by higher coal prices, according to S&P Global Ratings. The firm predicts that the consolidated debt of major steel makers in India will remain at 2.1 trillion rupees as of March 2025, up 150 billion rupees from the previous estimate. The average prices of metallurgical coal are expected to rise to $270 a ton in 2024, largely due to supply constraints in Australia, tensions in the Red Sea, and strong demand from India and markets outside China.
Steel Industry Growth: Indian steel-makers debt reduction plans may be slowed down by higher coal prices, according to S&P Global Ratings. The firm predicts that the consolidated debt of major steel makers in India will remain at 2.1 trillion rupees as of March 2025, up 150 billion rupees from the previous estimate. The average prices of metallurgical coal are expected to rise to USD 270 a ton in 2024, largely due to supply constraints in Australia, tensions in the Red Sea, and strong demand from India and markets outside China.
"We expect lower seaborne met coal prices will help Indian steel mills, as they import 70 per cent of their total requirement," S&P Global Ratings credit analyst Anshuman Bharati said.
Iron ore export to China destabilises steel production in India
In the first four months (January-April), iron ore exports from India increased by 66 per cent to 22.42 million tonne (MT). About 90 per cent of the export goes to China
Nevin John | May 28, 2021 | Updated 18:34 IST
The price of hot rolled coil (HRC) increased to Rs 70,000 per tonne as compared to Rs 45,000 at the same time last year
Spike in iron ore export, largely to China, has made the lives of Indian steel makers miserable. Though global steel prices have been high in the first four months of this year, producers are struggling to supply as there is a huge shortage in raw material, iron ore.
: Thursday, April 29, 2021, 5:59 PM IST
Teji Mandi Explains: As China shifts its steel export policy, how will it affect the domestic industry?
With China curbing its exports, Indian steel manufacturers are in a sweet spot to gain the major market share in the international market.
In a major policy shift, China has withdrawn export rebates on major finished steel products and cut import duty on various semi-finished, crude, and scrap steel.
As per the latest announcement, China has removed VAT rebates on exports of 146 steel products from May 2021. It includes key export products like hot-rolled coils (HRC), wire rods, and rebar. China has also cut import duty on pig iron, crude steel, and steel scrap. Further, it has raised export duty by 5% on high silicon steel, ferrochrome, and foundry pig iron.