Coking coal buying momentum has gained in the key Asian export market—Australia—on account of import increasing among Indian and Chinese buyers.
Of late, imports among Indian buyers has strengthened, resulting in supplies in the Asian export region dwindling. The tightening supply also has created the apprehension of possible increment in the export prices in the near future.
The latest import offers of the Premium HCC were assessed slightly higher at USD 96.70/MT FoB Australia; and that of the HCC 64 Mid Vol were assessed at USD 88.80/MT FoB Australia, slightly higher than that in the last week. The CFR India prices in respect to these offers come up to: USD 105.70/MT and USD 97.80/MT respectively.
In the meantime, Indian steel makers are pushing for continuation of the Minimum Import Price (MIP) on the section of steel products. The MIP is slated for expiry on 5Aug’16. The country’s steel makers are of the view that imposition of the MIP has been beneficial for them.
As a consequence of the MIP imposition, steel production in the country during the first quarter of FY17 grew by 3.8% as compared with that in the same period of the last fiscal. At the same time, steel consumption in the country improved meagerly by 0.3%; and steel imports fell by 30.7%.
IMPORTS
Higher volumes of imports have landed at Indian ports as imports among Indian buyers increased. During the 1-25July’16 period, 3.3 MnT of imports entered into the country, according to data compiled by SteelMint Research.
Steel makers were the top importers during the period. Some of them were: SAIL, Tata Steel, Bhushan Steel, JSW Steel, NINL, among others.
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