The hike in prices of coal by state-run CIL is likely to make producing steel for secondary steel players costly by up to Rs 500, says a report.
The increase followed an additional levy on evacuation facility charges (EFC), of Rs 50 per tonne, from December 20, credit rating agency Icra said today.
“The recent hike in coal price and railway freight rate hikes, following the earlier levy of EFC, is expected to increase the cost of steel production by Rs 150-500/MT for a secondary steel producer using sponge iron and induction/ electric arc furnaces for steel-making, and dependant on domestic coal,” the report said.
On January 9, Coal India Ltd (CIL) hiked thermal coal prices for both power and non-power consumers with immediate effect, a decision which electricity producers said would jack up energy prices by up to Rs 0.50 per unit.
The company has hiked prices of non-coking coal which will raise average coal price by about 8.5 per cent, CIL chairman Gopal Singh had told PTI. Read More…