Coking Coal prices are sliding as demand from Chinese steel makers is loosening. The mandate of the Chinese government to lower steel production in that country by 50% during mid-Nov’17 to mid-Mar’18 for curbing atmospheric pollution has turned the sentiments among the steel makers there bearish. They have lowered Coking Coal imports as a result.
As the import demand loosened, offers for the coal in Australia were quoted lower. The latest offers for the Premium HCC are quoted lower by around USD 2.25/MT, at around USD 179.50/MT FoB Australia, against the offers in the last week. At the same time, the recent offers for the 64 Mid Vol HCC are quoted at around USD 151.60/MT FoB Australia, which are lower by around USD 1.40/MT over the week-ago offers.
Source: CoalMint Research
For Indian buyers, these offers translate into: USD 194.75/MT and USD 166.85/MT respectively on CFR India basis.
Most steel makers in India are waiting for the prices of the coal to fall further for starting importing aggressively. In India, demand for the coal will increase further as steel making is going on at higher rates. Indian steel producers are expected to ramp up production, taking advantage of the production cuts in China.
IMPORTS
Nevertheless, Coking Coal imports are going on substantially in India. During the 1-16Oct’17 period, around 2.4 MnT of the coal was imported in the country, data collected by CoalMint Research shows.
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