Coking Coal prices are in a rising mode, being pulled up by the active importing by steel makers in China.
A fresh wave of Coking Coal imports have originated in China, being unleashed by the need to stock the coal among the steel makers in that country as there were rumors of a possible domestic production cut to be soon implemented in China.
Moreover, the Chinese government had mandated that with effect from 1 July’17 only government approved ports will be allowed to receive coal imports; small ports will no longer be able to do so, according to the mandate.
The clear fall out of the active imports in China is the upsurge in the prices of the coal. Of late, the offer for the Premium HCC is reported at USD 153/MT FoB Australia, which is higher by USD 6/MT than that reported last week. The latest offer for the 64 Mid Vol HCC is also reported higher by USD 2.35/MT, at USD 137.75/MT FoB Australia, than that reported the week-ago.
Source: CoalMint Research
These offers amount to: USD 163.40/MT and USD 148.15/MT respectively on CFR India basis for Indian buyers.
JSW Steel has recently secured through an auction the Moitra Coking Coal mine in Jharkhand. The mine bears an extractable reserve of around 30 MnT.
In the meantime, the current Coking Coal offers from Russia and Canada are at around USD 150/MT and USD 166/MT respectively on CFR India basis, as heard in the market.
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