Some Indian steelmakers are planning to invoke the force majeure clause and renegotiate short- and long-term contracts with customers following a surge in raw material costs, including coking coal prices.
"Due to the global geopolitical situation, there is a problem of short supply (of coking coal) and that too is at a very high price," said JSW Steel-owned Bhushan Power & Steel in a letter to its customers. "This is a force majeure situation... the net impact is coming to ₹25,250 (per metric tonne). We request you to accept (the price hike) and continue the same (contract)."
Force majeure refers to an event that cannot be anticipated or controlled, and which makes execution of a contract impossible or impractical.