The robust steel demand in China has led the Australian think-tanks to forecast higher prices of Coking Coal in the coming days.
In the latest quarterly outlook, published by the Department of Industry, Innovation and Science of Australia, price of Coking Coal has been forecasted to rise by 16% to $99.40/ton. However, the actual prices are much higher, at rates exceeding USD 200/MT, exceeding the forecast.
The optimistic forecast was governed by the upturn in the construction sector in China that has raised demand for steel. As a consequence of higher steel production in China, demand for Coking Coal has been robust in China, substantially increasing Coking Coal imports from Australia.
Parallel to the Chinese demand, the recent spate of supply disruptions in Australia also have had compounded to the upswing in Coking Coal prices.
Indian steel makers have had no other way but to sustain the high costs of the coal variant. As India is deficit in Coking Coal supply, the demand in the country is met predominantly through imports from Australia.
Source: Market Participants
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