Coking Coal prices have continued to exhibit the falling trend, as increasing supply pulled down the prices.
Supply has increased not only in Australia but also in other regions of the world. In Canada, Conuma Coal Resources has restarted production in its Wolverine mine that is expected to make available around 1.5 MnT of Coking Coal for export in 2017.
In the US, around 9 MnT of Coking Coal is expected to be available for export in this year. Warrior Met Coal, Rosebud Mining and Ramaco will start mining operations in 2017.
In Australia, supply is constantly increasing as Coking Coal mines are heading towards full capacity utilization. Coking Coal mines, owned by South32 and Anglo American, are expected to attain full capacity production this year.
As a consequence of increasing supply, import offers have gone down further. The latest import offer for the Premium HCC is reported lower at around USD 185/MT CFR India; and that for the 64 Mid Vol at around USD 170/MT CFR India.
The corresponding export offers are at around: USD 175/MT FoB and USD 160/MT respectively on FoB Australia basis.
Source: Market Participants
In the meantime, the major steel players in India have voiced against the imposition of 2.5% import duty on the coal type, and the clean energy cess of INR 400/MT.
IMPORTS
Coking Coal imports have continued to land at Indian ports. During the 1-23 Jan’17 period, 2.8 MnT of the coal was imported into the country, data compiled by CoalMint Research shows.
Leave a Reply