The Australian coking coal market has seen lower buying interest due to the recent weakening of the Yuan currency due to uncertainties arising out of Britain’s exit from the European Union.
As a result of the low demand, Australian suppliers have kept their Coking coal export offers unchanged. The latest export offers of the Premium HCC were assessed unchanged at USD 91/MT FoB Australia; and that of the HCC 64 Mid Vol were also assessed stable at USD 87/MT FoB Australia. For Indian buyers, these offers amount to: USD 99/MT CFR India and USD 95/MT CFR India respectively.
Demand for coking coal is going to rise substantially in India as steel making is on a rising path.
Recently, Brazilian steel giant Gerdau has publicized that it aims to reach full capacity at its Indian facility by 2017 end. The steel giant has a plant at Tadipatri in Andhra Pradesh that bears a production capacity of 2, 60,000 tonne per annum. The capacity will be raised to 3, 25,000 tonne per annum by 2017.
IMPORTS
Indian buyers have been importing the coal variant to meet their production requirements. During 1-24 Jun’16, 3,199,815 MT of Coking coal was imported into the country, mainly from Australia, as shown by SteelMint Research. The top importers during the period were: SAIL, TATA STEEL, Bhushan Steel, Vedanta, Bengal Energy, among others.
Leave a Reply