Shortage and strong demand have continued to prevail in the international Coking Coal markets resulting in the prices hovering at high rates, without the slightest indication of any downward correction in the near term. To add fuel to the fire, the recent announcement by the Australian meteorological department of around 11 cyclones to hit the country has intensified exports of Coking Coal. According to a source, exports of Coking Coal from Australia have escalated by approximately 3 MnT after the news of bad weather doing the rounds.
Import offers of the coal variants have hovered at around the rates prevailed the week last. The latest import offer of the Premium HCC is assessed at around USD 321/MT CFR India; and that of the 64 Mid Vol HCC at around USD 281/MT CFR India.
On FoB Australia basis, these offers were reported at around: USD 310/MT and USD 270/MT respectively.
Source: Market Participants
JSW STEEL PLANS MINING OPERATIONS IN USA
Reeling under the pressure of sharp increase in Coking Coal prices, JSW Steel mulls restarting Coking Coal mines in the US. The company owns nine Coking Coal mines with a cumulative capacity of 123 MnT in the West Virginia region of the US. These mines were acquired from US-based companies in 2010; and were not developed in view of the then falling Coking Coal prices and global economic slowdown. The restart of the mines could be expected by Mar’17, according to inputs received.
CHINA RESTORES 330 MINING DAY RULE
The National Reform and Development Commission (NRDC) of China has relaxed the 276 mining day per year rule, ruling that coal mines can operate 330 days per year, in view of the rising coal prices, impacting the user-industries. With the relaxation to the rule, Coking Coal supply in that country could be expected to improve.
IMPORTS
Imports of Coking Coal into India have remained intact. During the 1-21 Nov’16 period, approximately 2.6 MnT of Coking Coal was imported into India, according to CoalMint Research.
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