Coal news and updates

SAIL to increase PCI coal share in fuel basket

September 16: Steel Authority of India is looking to increase the percentage of PCI coal in its fuel basket, going forward.

Arti Luniya, Executive Director, Coal Import Group, Steel Authority of India, while speaking to ICMW on the sidelines of the 8th Indian Coal Markets Conference in Kolkata, organised by mjunction services limited, HIS McCloskey and the Coal Consumers’ Association of India (CCAI), said that, at present, PCI coal usage was less than 1 mt – around 600-700 tons. However, this would increase by 30-40% once SAIL’s capacity expanded to 23.5 mt “very soon”.

Luniya said steel companies abroad have been increasing the usage of PCI coal as fuel in their steel-making process and Indian steel mills are replicating this trend as well, though the commodity is not produced in India.

“Our (SAIL’s) aim is to increase the share of PCI coal in the fuel basket but we are still working out the ratio,” she informed.

From the customer’s perspective, she said there is a change in the mix of coal requirements from the steel industry in a bid to increase competitiveness. As a result, a larger mix of semi- hard, semi-soft, semi-coking and non-coking coal, including PCI, is being pressed into service.

PCI coal usage is on the rise, because of its cost competitive factor, she said, adding that at the current price points of $120 per ton, PCI coal was 20% lower than coking coal.

SAIL is currently sourcing PCI coal from Australia.