Coking Coal import offers have slid further, with the significant improvement in supply.
The latest import offer for the Premium HCC was assessed lower at USD 214/MT CFR India. In a similar trend, the recent import offer for the 64 Mid Vol HCC was also assessed down at USD 194/MT CFR India.
Australian sellers have quoted these offers at: USD 190/MT and USD 180/MT respectively on FoB Australia basis.
Source: Market Participants
In the meantime, the extant 2.5% import duty on the coal type is posing concerns among the decision makers in the steel industry. The Steel Ministry, of-late, suggested the Finance Ministry to consider lowering the import duty in the upcoming budget.
The draft National Steel Policy, released today, acknowledges the constraints to the Indian steel industry by the import dependency of Coking Coal. The policy stresses upon increasing the domestic Coking Coal production to lower imports of the coal by half by FY31.
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