India Steel Market Watch
October 12: Thermal, coking coal and met coal prices are likely to go down further in the short term, Subhasish Chakravorty, CEO, International Coal & Coke Trade, Kineta Global Limited, said on the sidelines of the 9th Indian Coal Markets Conference, organised by mjunction services limited.
He said that prices, across all three categories of the fuel could take a further hit of 10%, in the short term, taking into account the global economy and GDPs, weak steel demand and power plants incapacity to operate at their full capacity.
However, he added the prices of the same could see a revival in mid-2016, provided steel demand improves.
At present, he said, most merchant coke makers are bleeding and on the verge of closure.
In Australia, he said, most mines are producing only 70% of their capacity due to lack of demand.
At present 6,000 Kcal/kg NAR steam coal from South Africa are ruling at around $50.40-50.70 a ton while the Australian 6,300 Kcal/kg GAR steam coal is hovering around $53/ton.
Hard coking coal (Australian) with VM-20.7% and ash of 10.5% is at $80.30/ton, down from $112 a year ago. Met coke (CFR India) has gone down from $192 per ton about a year back to present levels of $133 per ton.