Wednesday, 27 April,
Tata metaliks, one of the largest producers of Pig Iron in India expects coking coal prices to soften in second quarter..*
The year before last, coal contract price was at USD 128. In the last year, the average price hovered around USD 210. Also, on the iron ore front, availability was a major concern and there was increase in the price by 40%, said Tata Metaliks officials.
Currently, Coking coal prices in spot market are hovering around $330/mt. And with Austrailian supply of coking coal improving, company feels that prices will not sustain at these levels and should fall to $270-280 levels in the second quarter of this fiscal.
Some of the reasons cited by the company are:
1) Better weather conditions in Austraila resulting in improved supply.
2) Sluggish steel demand in International market.
3) Slow recovery in Japan after the earthquakes.
4) China turning net exporter of coking coal.
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