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Abnormal coal price rise hikes soda ash costs
08
Mar '11
Coal India, the state owned major supplier of coal in India, has recently increased coal prices.

This is expected to badly hit the manufacturers of caustic soda and soda ash, particularly units which depend on captive power plants for production.

Majority of these captive power plants being thermal power plants use coal as feedstock.

Coal India has hiked coal prices by around 30 to over 190 percent, based on the grade. This is expected to escalate cost of caustic soda production by Rs 3,500-4,000 per ton.

The chloro-alkali industry, particularly the caustic soda units are power intensive industries, wherein electricity expenses total up to 60 percent of the overall production cost.

Around 2,800 units of power go into production of one ton of caustic soda.

Fibre2fashion News Desk - India

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