Due to challenges in doing business with Russia following its invasion of Ukraine, Tata Steel is looking for alternate suppliers of coal for its European and Indian businesses. Fears of supply disruptions and rising prices of commodities ranging from aluminium to coal and iron ore have risen as a result of the geopolitical turmoil following Russia’s invasion of Ukraine. Tata Steel will search for other markets for coal imports because dealings with Russian suppliers and lenders are now fraught with a lot of uncertainties. Russia used to supply up to 15% of the company’s coal requirements.
According to officials, “We need to buy more from North America for Europe,” noting that India often imports coal from Australia. The supply vacuum left by Russia and Ukraine also opens up export opportunities for Indian steel producers, particularly to countries like Turkey and Europe, they said. But Tata Steel’s Indian business will stick to exporting about 10-15% of its sales in the next financial year starting April. “When selling that 10-15 percent, we want to focus on the greatest rates. Southern Europe is now a better alternative than Southeast Asia,” they added. Because the price increases are more than input costs, the company’s margins should improve in the near future, and there may be room for further increases.