Coking coal prices are likely to rebound in July this year
as demand from China and India are expected to improve.
“Rising Indian imports will have a positive impact on coking
coal,” said Natalie Robertson, an analyst at ANZ Banking Group Ltd. in
Melbourne.
Contracts of coking coal, a key ingredient used to make
steel, which peaked at $330 in the June quarter last year is expected to remain
in the range of $220 and $230/MT this year. However, it may rise higher if
recovery is seen in European economy.
According to Tapan Ray, executive director for
mining at PricewaterhouseCoopers Ltd. in Mumbai, “demand for Coking Coal may
improve as India reduces interest rates on loans, critical for
developing industrial projects and buying homes, cars and appliances.”
Supply constraints in Australia's Queensland state, caused
by rain and labor strikes at mines, will also boost prices.
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