India's secondary steelmakers are either planning to pass on the high cost of metallurgical coking coal to their customers or cutting down production as the price of coal is at an all-time high amid a global supply crunch. "Our cost of production has gone up by around Rs 20,000 a tonne in the past six months due to high coking coal prices. We are in talks with our …
Import scrap prices in India weaken on global cues, trade hit by negative outlook 14 Dec ... Some Turkish mills cut domestic scrap quotations after long break 10 Dec. Weak demand takes toll on import coal prices in China 10 Dec. Ex-US scrap deal in Turkey closed at $470-471/mt CFR, prices stabilize 10 Dec. S. Korean mills cut import scrap ...
"Seaborne cargoes [of coking coal] are expensive and we didn't use much coking coal from America and Canada previously," a mills source from northeast China added. Market sources reported that mills in north and east China have proposed a fourth domestic coke price cut by another 100 yuan ($15) per tonne effective from March 12.
Prices for Australia's Newcastle coal, considered an Asian benchmark, have surged close to a record. The discord between China, the world's largest consumer and importer of coal, and Australia had stranded as many as 70 ships and 1,400 seafarers waiting to discharge their cargoes outside Chinese ports in January.
The persistent supply tightness in China's domestic coking coal market spurred an unprecedented rally in domestic coal prices in Q3. Platts assessed domestic coking coal prices up 82.7% quarter on quarter, rising from $307.24/mt to $561.45/mt, as local government safety inspections and environmental regulations crimped domestic production.
High coking coal prices are likely to impact gross margins of steel mills, says India Ratings and Research (Ind-Ra). Accordingly, coking coal prices were up 5 per cent MoM and 103 per cent YoY to $222 per MT in mid-August 2021. "Australian coking coal prices are receiving support from a strong demand from Asian countries, ex-China.
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