Coking coal prices are likely to continue traversing upwards as there is no prospect of any weakening of demand.
SUPPLY REMAINS TIGHT
Prices of the coal variant have skyrocketed recently on account of supply disruptions in Australia, and strong demand emanating from Chinese and Indian steel mills. Besides, constricted supply in China also has added fuel to the price rise.
Supply in Australia has tightened as several Coking coal mines in and around the Queensland region have been subjected to production disruptions. Compounding to the tight supply situation, output of the Coking coal mines in the Shanxi region of China has been hampered due to the recent heavy rains, which also damaged roads and mining infrastructure.
IMPORT OFFERS GO SIGNIFICANTLY UPWARDS
The latest export offers of the Premium HCC were reported significantly higher at around USD 158/MT FoB Australia. While, the recent export offers of the 64 Mid Vol HCC were reported to ascend to around USD 143/MT FoB Australia.
For Indian buyers, these export offers translate into import offers of: USD 167/MT and USD 151/MT respectively on CFR India basis.
Source: Market Participants
*Readers could refer to the CoalMint price database in the website for viewing the historical prices.
STRONG DEMAND TO CONTINUE
Robust steel making in China has generated strong demand for Coking coal, and the steel production scenario is no different in India. Since there is no prospect of any down-turn in steel production in any of the countries in the near future, demand for the coal variant will remain strong.
Moreover, bullish sentiments of buyers will also prevent the prices from downturn, and instead will fuel upswings. According to inputs received, many buyers in China and Japan were even willing to pay more to procure Coking coal cargoes.
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