Price downturn fails to make coking coal imports attractive for Indian buyers.
Australian coking coal prices, the most preferable grade for Indian steelmakers, has seen continuous downfall over the month. Australian premium HCC, 75,000 MT coal is being offered at USD 93-94/ MT for CFR East Coast of India. Whereas, 65,000 MT Australian PCI is being offered at USD 76/MT CFR India. Although, the prices are falling, Indian buyers are resisting imports owing to currency depreciation.
Coking coal imports in India
According to SteelMint’s analysis, about 19 MnT of coking coal has already been imported to India in the first four months of FY16 which is 4% more Y-o-Y. Coking coal imports to India in Aug’15 is expected to be around 3.5 MnT.
Grade- Australian Premium HCC
Prices- USD/MT FOB (Average Monthly Prices)
Qty in MnT
Aug’15 (Price & Import)- Till latest updates
Source- SteelMint Research
Deprecating value of INR has obligated Indian steel producers to lower their interest in coking coal imports. INR has plunged to 66 against USD, its lowest in last three years. Indian buyers are resisting further bookings for coking coal and Met-coke till marked stabilizes and becomes favorable for imports.
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