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Informist, Friday, Oct. 23, 2026

 

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--Jindal Steel: Expect favourable outcome with upcoming India-EU FTA 
--CONTEXT: Comments by Jindal Steel mgmt in post earnings analyst call 
--Jindal Steel: Europe's carbon tax border mechanism remains an issue 
--Jindal Steel: Aiming to increase overall product mix 
--Jindal Steel: Coking coal cost $12-$15 per tonne in Jul-Sept 
--Jindal Steel: Aim to reach 65-70% of coal requirements from captive mines 
--Jindal Steel: Expect coking coal price to decline by Dec 
--Jindal Steel: Expect coking coal cost inflation at $20-$25 per tonne in Q3 
--Jindal Steel: Company won't move back to propane usage 
--Jindal Steel: Expect better net sales realisations in Q3, Q4 
--Jindal Steel: Expect to commission new pellet plant by June 
--Jindal Steel: Expect to commission new direct reduced iron plant by June

 

By Astha Oriel and Utthara E. S

 

MUMBAI/NEW DELHI – Jindal Steel Ltd. expects the coking coal cost to decline by December if the geopolitical tensions ease, a senior company official said on Friday. The company's coking coal inflation for the September quarter stood at $12 per tonne–$15 per tonne, according to the official. The company expects coking coal cost inflation at $20-$25 per tonne in the December quarter. 

 

"The moment the black sea operations are available, then the Indian steel industry will not have a shortage of coal. Already, Indian steel industry has reduced its exposure to Australia from 75–78% to only 50% today... So the moment this war stops, you are next. Then everything will be possible. And I'm sure if this is done in the next one or two months time, and this annual treaty protocol, a day or two vessels, then I think coal prices, coking coal prices, may come down in December in general," the official said in an analyst conference call after announcing the September quarter results. 

 

The company aims to reach 65-70% of coal requirements from its captive mines, as per the official. For the September quarter, the company's cost of raw materials surged over 37% on year to INR 72.64 billion. Of this, the coking coal was a key cost impact, the official said. 

 

The company expects better sales realisation in the December and March quarters, as per the official. "In terms of steel, while the realisations were down because of the monsoon.. Q2 (September quarter) is typically not a good season for the steel because of lower construction. The prices in HRC (hot rolled coil) had strengthened, but that strengthening had come towards the end of Q2, which was primarily August and September," the official said. 

 

For the reporting three months, the realisation of TMT (thermo-mechanically treated) products jumped to INR 59,000 per tonne from INR 52,000 per tonne. The realisation of hot-rolled coil products jumped to INR 61,000 per tonne from INR 51,000 per tonne, according to another official. 

 

Going ahead, the company expects to commission its net pellet plant and new direct reduced iron plant by June. The company also aims to increase its overall product mix, according to the official. Amidst the West Asia crisis, the company has diversified its strategy of using coal-derived synthetic gas to replace natural gas and propane at its Angul plant in Odisha. When asked if the company will opt to go back to propane once the war in West Asia eases, the official said the company does not plan to go back to propane usage.   

 

Notably, the company expects a favourable outcome with the upcoming India-EU free trade agreement, according to the official. The official, however, pointed out that the carbon border adjustment mechanism continues to remain a challenge. For the September quarter, the company's consolidated net profit was INR 7.74 billion on revenues of INR 166.79 billion. The company announced its earnings during market hours. Friday, shares of the company closed 2% lower at INR 1,015.90 apiece on the National Stock Exchange.  End

 

Edited by Deepshikha Bhardwaj

 

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