In the midst of the import demand loosening in China, there was slight uptick in the Coking Coal prices of late, as the Meteorological Department in Australia had predicted heavy rains towards the end of 2017 due the formation of La Nina , prompting the sellers there to slightly raise their offers in the hope of the steel makers in countries, such as India, buying aggressively to stock the coal ahead of the predicted rainfall. The possible rainfall, if takes place, will impact the Queensland region of Australia; which is the main Coking Coal producing region.
The latest offers for the Premium HCC is assessed at around USD 181/MT FoB Australia, which is slightly up by around USD 1.5/MT against the week-ago offers. Also, the recent offers for the 64 Mid Vol HCC are assessed at around USD 151.80/MT FoB Australia, almost steady at the rates in the week last.
Source: CoalMint Research
For Indian buyers, these offers translate into: USD 196/MT and USD 166.80/MT respectively on CFR India basis.
In India, the demand for the coal is strong due to the steel makers importing the fuel on a continuous basis not only to cater to their regular production needs but also to stock the coal for future use. As assessed by CoalMint Research, around 3.2 MnT of Coking Coal was imported in India during the 1-23Oct’17 period.
Meanwhile, Shri Girija Alloy and Power Private Limited, based in Andhra Pradesh, is in the initial stages of expanding the capacity of its existing Ferro Alloy plant at the Peddapuram village in the East Godavari district of the state. As part of the capacity expansion process, the capacity of the Ferro Manganese unit will be raised by 120,000 TPA to 1,56,000 TPA; while the capacity of the Silico Manganese unit will be increased by 85,000 TPA to 1,57,000 TPA. After the units, undergoing capacity expansion, start functioning, 1,14,320 TPA of Met Coke—a Coking Coal derivative– will be required as a key feedstock.
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