The Russian invasion continues to wreak havoc in Ukraine, the Russian troops have now entered the 17th day of the offensive against Ukrainians. Ukrainian President Zelenskyy’s request has been accepted by the US and its allies globally. Russian oil exports have been banned and now the surge in commodities has sparked fear among global energy producers.
Tata Steel is India’s massive producer of energy and it is looking for replacing Russian coal imports to meet the energy demand in both India and Europe. Putin’s actions have created a massive crisis globally and nations are working constantly towards finding alternate sources of vendors for Coal, Aluminum, and Iron ore.
Going forward any transaction with Russia will put India under heavy criticism for the geopolitical crisis Russia has stirred up inhumanely.
T.V Narendran, MD of Tata Steel Ltd in his official statement said, “Tata Steel will replace Russian coal vendors and look for alternative sources to meet the growing domestic and international demand for energy, Russia alone would export 15% of our company’s coal demands. However, we can’t do business going forward with them.”
Narendran further added, “We now have to buy the surplus of our coal requirements from North America to meet the supply of European Nations, usually our entire consignment comes from Australia. Russia has left a huge gap as of now, but nations across the globe are looking at alternatives and are catching up with the demand and supply of Coal, Aluminum, and Iron Ore. Ukraine has flung its doors open for Indian Steel producers, it has opened up several export opportunities in the steel segment. India also is a chosen vendor for Turkey and European countries.”
Presently for the upcoming fiscal year starting in April 2022, Tata Steel plans to export 10 to 15% of its energy production. Tata Steel wants to sell that 10 to 15% at a competitive price so more than South East Asia, the focus will be on southern Europe.
Margins are expected to take a high in the near future, as the input cost is less when compared to the increasing price of the commodities. And looking at the sanctions there is a high chance for further increase in the price of the commodities.
