In a stark disparity, international Coking Coal prices are slipping, while, the prices in India have gone up.
Import offers have undergone further down swings as supply got better. The latest import offer for the Premium HCC is assessed downwards at USD 191.5/MT CFR India, and that for the 64 Mid Vol HCC is reported lower at USD 180.5/MT CFR India.
On FoB Australia basis, these offers are valued at: USD 181/MT and USD 170/MT respectively.
Source: Market Participants
In contrast, Bharat Coking Coal Limited and Central Coalfields Limited—subsidiaries of Coal India Limited—have raised their respective Coking Coal prices by 20%, on the ground of high international prices. The grade-wise rates could be obtained at the article: BCCL Raises Coking Coal Prices by 20%.
DEMAND
Consumption of the coal will rise remarkably in the coming years, to be driven by the growing steel industry in the country. The Steel Ministry, in its recently released draft National Steel Policy 2017, forecasted the demand for Coking Coal to rise to 180 MnT by FY31, when production of steel in the country will rise to 300 MnT.
This clearly indicates that imports of the coal will rise substantially, given the deficit in domestic supply in the country.
To meet the growing Coking Coal demand in the country, Coal India Limited has recently initiated a process of appointing merchant bankers for identifying Coking Coal assets in foreign countries to be acquired by the state-run miner.
IMPORTS
In the meantime, Coking Coal import consignments have continued to land at Indian ports. During the first two weeks of Jan’17, around 2.2 MnT was imported into the country, data collected by CoalMint Research shows.
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