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India’s largest steelmaker Tata Steel is looking to Australia and North America for coal supplies after deciding to halt imports from Russia.
This is in response to a conflict between Russia and Ukraine that has forced buyers to find alternative commodity supplies such as coal, gas, wheat and corn.
“[Our] The last shipment from Russia was made in May,” said TV Narendran, CEO of Tata Steel. Nikkei Asia.
“India currently imports coal mainly from Australia, while Europe buys … from the United States and Canada.”
Tata Steel previously purchased about 3 million tonnes of goods annually from Russia. However, on April 20, the company said: statement He said he had made a “conscious decision” to stop doing business with Russia, citing the conflict in Ukraine.
“To ensure business continuity, all steel manufacturing sites in India, the UK and the Netherlands have sourced alternative supplies of raw materials to end their dependence on Russia,” the company said.
This follows a series of tougher sanctions against Russia by the European Union, including bans on steel, paper, plastics, cosmetics and wood pulp. Meanwhile, Russia’s Vladimir Putin has threatened to halt all energy imports to Europe over Western countries’ proposal to cap gas prices.
In response, Putin said: “We will not supply gas, oil, coal, kerosene. We will not supply anything.”
soaring energy prices
Rising coal costs, soaring energy prices and slowing demand amid hyperinflation are hurting Tata Steel and other related companies.
Tata Chief Executive Officer Narendran said the issue of high prices has been raised to the government where the company’s branches operate, while coal import prices are rising.
For example, Tata asked the UK government for a subsidy package to make its Port Talbot branch more ‘green’, saving thousands of jobs on the ground.
“We are a global group that operates across borders,” Narendran reported to Nikkei Asia.
“Europe is moving towards a greener future and governments are actively involved in helping the industry transition. or what German companies are asking of the government,” said Narendran.
“Energy costs in the UK have always been higher than in Europe, even before the Ukrainian war. increase. [on the subsidy request]”
Currently the world’s 10th largest steel producer, the company aims to produce 55 million tonnes of steel annually by 2030.
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Henry Jom is an Australia-based reporter covering Australian local news. Please contact [email protected].
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