SAIL and RINL have negotiated the current fiscal's long-term coking coal prices with global suppliers at US$115-125 per ton, which is over 60% lower than what the companies had paid in the last financial year, according to reports.
“A committee, supposed to negotiate the coking coal prices with global suppliers, has finalised the rates at US$115-125 a ton for the two companies (SAIL & RINL),'' P K Rastogi, Secretary, Ministry of Steel was quoted as saying.
The new contract would be effective from April 1 this year instead of July 1, Rastogi said, adding the differential price for three months (April-June) of 2008-09 contract would be carried forward over a span of few years.
In 2008-09 (July-June), the steel companies had settled their long-term contracts for coking coal, a vital raw material for steel-making, at US$ 292-300 a ton, which heavily added to their input costs.
SAIL, alone incurred an expenditure of around Rs60bn on the import of around 10.5mn tons of coking coal in the last fiscal. In the current financial year, the company is likely to import 11mn tons of coking coal while RINL over 3mn tons, the report added.
Source: Indiainfoline
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