The metallurgical coal market continued to face
downward pressure with Indian buyers following suit as Chinese buyers lowered
bids earlier.
There is still mixed views from the Asian buyers.
Few are opinion that $170-175/MT CFR is a buyable price. However, there are
other traders in the China who think there is scope for further correction and
market may still not be at its lowest.
It was earlier reported that more coking coal reserves were
discovered in Mongolia. Mongolia has already acquired market share from
Australian producers. Only three years ago, Mongolia supplied 11 per cent of
China's demand compared with 65 per cent by Australian competitors. Mongolia is
now supplying close to 45 per cent of China's demand compared with Australia's
23 per cent. With mines yet to be commissioned and improvements in
infrastructure, Mongolia's market share can only increase further. (Sourced)
Leave a Reply