The upsurge in Coking Coal prices has received another push—bad weather damaging a coal port near Brisbane of Australia.
The port was damaged badly due to bad weather; and will thus be idle for weeks. The port shipped 7 MnT of coal pertaining to 90 vessels during 2016.
The incident will impact shipments of Coking Coal that will in turn raise the prices.
Coking Coal import offers have gone further upwards on account of supply tightness. The latest import offer of the Premium HCC is assessed significantly up at USD 320/MT CFR India; and that of the 64 Mid Vol HCC is also assessed considerably higher at USD 280/MT CFR India.
Australian suppliers have quoted the offers at: USD 310/MT and USD 269/MT respectively on FoB Australia basis.
Source: Market Participants
INDIAN INDUSTRY BODY URGES INDIAN STEEL MAKERS TO OPPOSE RISING COKING COAL PRICES
The Indian Metallurgical Coke Manufacturers’ Association has recently urged the Indian steel makers to stand united to resist the significant upswing in Coking Coal prices.
The association has reasoned that the rising prices of the coal will also unleash a cascading effect on prices of steel products in the country.
According to the association, China, with an annual imports of around 35 MnT of Coking Coal from Australia, virtually controls the global Coking Coal prices; thus, the rise in the prices will not impact China as much it will do to India. Furthermore, Indian steel makers are also unable to pass on the entire increased price of the coal to user industries as this would result in a spiraling effect in the user industries.
To relive the country’s steel makers, the association suggested them to purchase the coal on the basis of contact pricing ( as done by Japanese counterparts) rather than purchasing on basis of pricing index.
IMPORTS
During the 1-11 Nov’16 period, around 1.6 MnT of Coking Coal was imported into India, data compiled by CoalMint Research shows.
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