Coking Coal prices, after the significant rise, are likely to fall with the beginning of 2017 as supply is going to increase, and demand outlook is bearish.
In the US, Warrior Met Coal, Ramaco and Rosebud Mining plan to resume operations at their idled as well as new mines in the next year. It is expected that 7 MnT to 11 MnT of additional Coking Coal supply will be available for export in the USA in 2017.
Also, the Illawarra and German Creek mines in Australia are expected to be operated at full capacities in 2017, as heard.
Unlike the expected production, demand is not expected to exhibit a rising trend, but is speculated the otherwise. China, the world largest producer, is going to reduce its steel production to around 626 MnT in 2017 from this year’s production of 645.4 MnT.
In the meantime, the import offers for the coal variant have not undergone significant movements from that the week last.
The latest import offer for the Premium HCC is assessed at USD 259/MT CFR India; and that for the 64 Mid Vol at USD 218/MT CFR India.
Sellers in Australia have quoted these offers at: USD 245/MT and USD 204/MT respectively on FoB Australia basis.
IMPORTS
Coking Coal imports have continued to land at the Indian ports. According to the data compiled by CoalMint Research, around 3.5 MnT of the coal had been imported into the country during the 1-23Dec’16 period.
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