Coal-parched steel, aluminium firms battle lower utilisation, higher costs

Primary steel producers, however, remain unperturbed as they rely on imported coking coal to meet their demand

With the domestic thermal coal shortage worsening, the aluminium industry and secondary steel producers are witnessing a sharp drop in their utilisation levels amid increased costs.

Both domestic steel and aluminium fall under the non-regulated sector. While the former relies on thermal coal as a key raw material to produce sponge iron, aluminium smelters have captive power plants that require the fuel as feedstocks.

“The utilisation levels for secondary steel producers have dropped to 60 per cent from 80 per cent earlier. It is a tough situation for them,” V R Sharma, managing director of Jindal Steel & Power, told