Is it true that Tata Steel is looking beyond Russian coal?
Answer
Answer
Amidst the burgeoning crisis in Russia and Ukraine, Tata Steel is looking at alternative sources of coal supply. Incidentally, Russia has been the major source of coal for plants in Europe belonging to Tata Steel under the Corus brand name. The Black Sea embargo has really made it tough for Russia to ensure supply chain functioning without frictions.
Tata Steel used to buy about 15% of its coal requirements from Russia mainly for Pulverized Coal Injection to add to the furnace. Russia may now look at North America as an alternative to procure coal for its European operations. Currently, India sources its coal from Indonesia and Australia. T V Narendran of Tata Steel expects OPMs to improve with price increases bettering the input cost spikes.