Coking Coal prices continue to remain at highs as tight supply continues to persist in the key international market.
As learnt from a source, mining in some coal fields in Australia has restarted but the output will take time to reach the market. So, the tight supply will continue to put upward pressure on Coking Coal prices.
The latest import offers of Coking Coal are apparently high, but are slightly lower than that assessed the week last.
The recent import offer of the Premium HCC was assessed at USD 226/MT CFR India; and that of the 64 Mid Vol at USD 223/MT CFR India.
Australian suppliers have offered the materials at: USD 215/MT and USD 212/MT respectively on Fob Australia basis.
Source: Market Participants
In the meantime, coal production in China has started increasing as that government temporarily eased the production cutting norms in view of the rising coal prices.
On the demand side, there has been no deviation of the strong consumption of the coal variant, especially by the Chinese as well as Indian steel mills.
Rashtriya Ispat Nigam Limited is setting up a new coke oven at its Visakhapatnam Steel Plant as coke requirement has gone up in the plant after expanding the capacity to 6.3 MnT per annum. Consumption of Coking Coal will increase in the plant after the new coke oven goes on-stream.
IMPORTS
Active steel production in the country has kept Coking Coal imports intact. According to the data compiled by CoalMint Research, around 3.27 MnT of the coal variant was imported into the country during the first 26 days of Sep’16.
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