Rashtriya Ispat Nigam Ltd (RINL), which operates the Vizag Steel Plant, is leveraging on use of pulverised coal injection (PCI) in its all three blast furnaces to save around ₹300-400 crore in the current fiscal, according to P Madhsudhan, Chairman and Managing Director, RINL.
“We are taking several measures to bring down the cost. We are looking at increasing PCI usage in all 3 blast furnaces to bring down cost at a time when coking coal price remain unpredictable. We will use pulverised coal injection in all 3 blast furnaces, saving around ₹300-400 crore. Moreover, the share of staff cost as a percentage of the total cost will go down to 11-12 percent from the level of 18 percent,” he said.
Volatile coking coal and iron ore prices are taking a toll on the company’s EBIDTA margins and RINL is adopting special initiatives to control costs by the use of PCI in the blast furnaces.
Prices of coking coal, which is mostly imported, surged sharply owing to supply disruptions in Australia by the end of Q4FY17. This impacted margins in Q1FY18 but price offers started to stabilise in the second quarter of FY18.
Added to this, the steel demand scenario also improved. RINL is looking to turn EBITDA-positive by the end of the current fiscal.
This story is from the August 2017 edition of Coal Insights.
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This story is from the August 2017 edition of Coal Insights.
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