Conforming to the market expectations, Coking Coal prices have continued with the downward drifting trend, owing to production going up.
Notably, woes of the Indian steel makers, on account of the import duty of 2.5% and the clean energy cess of INR 400/MT, will continue as these issues were not addressed in the union budget tabled in the parliament today.
The latest import offer for the Premium HCC is reported down at USD 181/MT CFR India; while, import offer for the 64 Mid Vol HCC is also reported lower at USD 168/MT CFR India.
Australian sellers have quoted these offers at: USD 171/MT and USD 158/MT respectively on FoB basis.
Source: CoalMint Research
In a recent development, the SAIL led consortium—International Coal Ventures Private Limited (ICVPL)—has decided to resume mining operations at its Benga mine in Mozambique with the intent of making some profits in view of the high Coking Coal prices. Mining operations at the mine were suspended in May’16 as Coking Coal prices were low.
ICVPL had acquired 65% stake in the Benga mine and the two green-field coal assets—Tete East and Zambeze—from Rio Tinto in 2014. The assets bear a cumulative coal resource of about 2.6 billion tone.
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