The fourth-largest producer of steel in the world, Nippon Steel Corp., plans to increase its ownership of coking coal mines in order to ensure a steady supply of this essential component.
The largest steel manufacturer in Japan already has ownership interests in a number of coking coal and iron ore mines, and it purchases around 20% of the 58 million tons of iron ore and 27 million tons of coking coal it imports annually from these holdings.
According to executive vice president Takahiro Mori, "it's not essential to stop at the 20pct."
According to him, "We are thinking about increasing the self-sufficient ratio by purchasing interests in raw materials (assets) that are significant to our strategy, high-quality, and affordable."
According to Mori, the steelmaker has a greater need to invest in coking coal mines than iron ore projects because the supply of commodities like metallurgical coal is already scarce due to Western sanctions against Russia over the invasion of Ukraine.
While coking coal prices are expected to remain high due to higher thermal coal prices and a decline in investment in new coal mines as part of the global effort to combat climate change, iron ore prices are anticipated to move in tandem with steel demand.
The materials and information on this article have been prepared or assembled by Viet Nam Steel and are intended for informational purposes only