Market for spot coking coal in Asia has seen signs of
improvement however the market is still lacking clear trend following the less
activities due to Christmas and New Year holidays.
A trader based in Singapore said that with less buying
interest there is no willingness for buying of material. The stability in the price
is contrasted with iron ore prices which has surged by nearly 24% in last
month.
Currently, the price for Premium Low-Volume is at $160.5/MT
FOB Australia, whereas, Grade of HCC 64 MID-Volume is at $148/MT with slight
increase in prices.
“Demand in the near future looks stable with positive sentiments
among traders encouraged by increase in Iron Ore and Steel prices, a source
said.
Market in India has remained cautious with mixed sentiments, reason being the stability in the dollar value against Indian Rupee and price
drop of 5.5% in iron ore lumps by NMDC which according to a trader might help
in improving steel margins.
However, market participants are expecting sluggishness in Indian market. Reason being
the low capacity utilization rate at mills, which one producer said was nearly
about 60-65%. While January to March is usually the peak period for demand in
steel sector before the end of the financial year, things are not expected to improve
this year. “At most it will hit just above 70%,” he claimed.
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