Coking Coal prices have continually drifted downwards due to improving supplies in Australia.
Coking Coal transportation from mines to ports has resumed as all the rail lines resumed operations after the temporary disruption due to damages caused by the Debbie cyclone. However, the Goonyella rail line is an exception as it still in the repair stage, and is scheduled for re-opening tomorrow, the 26Ap’17.
In the meantime, demand also has shrunk as buyers are waiting and watching for the prices to decline to significant levels. Anglo American, a major coal miner in Australia, has announced resumption of coal mining after suspension of production activities due to the cyclone. BHP Billiton also is expected lift force majeure soon.
According to the latest information received, the spot price of the Premium HCC has declined to USD 252/MT FoB Australia; and the spot price of the 64 Mid Vol HCC has decreased to USD 227/MT FoB Australia.
Source: CoalMint Research
For Indian buyers, these offers translate into: USD 264/MT and USD 239/MT respectively on CFR India basis.
DEMAND TO RISE IN INDIA
Demand for Coking Coal in India will increase in the future as steel making is going to rise from the current levels. In FY18, steel production in the country is estimated to grow at 10-12%. In the preceding fiscal, FY17, steel production in India was at 101.3 MnT.
IMPORTS
Coking Coal imports continued to drift into India demand is active due to the healthy steel production going in the country. During the 1-22Apr’17 period, around 3 MnT of Coking Coal was imported into India, data compiled by CoalMint Research shows.
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