Mar26, 2011, 06.56PM IST,PTI
NEW DELHI: Steel Authority of India Chairman C S Verma today said that the coking coal prices, that have softened in the last two weeks, will fall further on expected rise in production.
"Coking coal prices in spot market have already fallen. I am of the firm opinion that the current coking coal price of $ 235 a tonne cannot be sustainable," Verma told reporters here.
Following flash-floods in Australia's Queensland province, the price of coking coal had skyrocketed to $ 350 a tonne just two weeks back. However, it felled sharply since then to $ 235 a tonne now.
"For the last two weeks, coking coal prices have been softening, especially on Japan fall-out. Japan is importing about 10 million tonnes every month. So, there is more availability in the market," he added.
Verma said the coking coal price would come to normalcy once mining companies in Australia resume full operations.
When asked if SAIL has entered into a contract for supply of coking coal for the April-June quarter, he said that the company was yet to take a final call, but it would soon happen.
"We have reached to a provisional pricing only. I can't share the detail since it is confidential," Verma said.
SAIL requires around 15 million tonnes of coking coal a year. Only 4.5 MT is met through domestic sources and the remaining 10.5 MT comes from imports, around 60 per cent of which comes from Australia. (sourced :Economic Times)
Showing posts with label coking coal spot prices. Show all posts
Showing posts with label coking coal spot prices. Show all posts
Tuesday, March 29, 2011
Saturday, January 22, 2011
Australian floods push up coal price
22 January 2011
Angeline Albert SupplyManagement.com
BHP Billiton has reported a 30 per cent drop in coal production between October and December last year due to flooding in Queensland in Australia.In its half-year report, the mining firm said: “Queensland coal production was significantly affected by the persistent rain and flooding that impacted the Bowen Basin in the December 2010 half-year.”
The Bowen Basin in Queensland is the largest coal reserve in Australia and the region accounts for around 56 per cent of the world's exports of coking coal, an essential ingredient in steel manufacturing. The company reported a 24 per cent decline in the production of coking coal in the third quarter, which ended on 31 December.
The report said the heavy rainfall that persisted for much of the late last year “significantly restricted” coal removal. “When combined with disruption to external infrastructure, we expect an ongoing impact on production, sales and unit costs for the remainder of the 2011 financial year.”
But BHP Billiton added its coal sales benefited from a “healthy level of inventory that was held across our supply chain at the commencement of the quarter”.
Spot prices for coking coal having risen above $300 a tonne (£187) this week. Contracts signed before the floods priced the commodity at $225 (£140) a tonne, according to the Sydney Morning Herald.
“As a direct impact of the floods, coal prices have moved rapidly higher, with some estimates indicating that coking coal prices could triple in the short term,” said Australian bank Westpac’s chief economist Bill Evans in a statement.
Angeline Albert SupplyManagement.com
BHP Billiton has reported a 30 per cent drop in coal production between October and December last year due to flooding in Queensland in Australia.In its half-year report, the mining firm said: “Queensland coal production was significantly affected by the persistent rain and flooding that impacted the Bowen Basin in the December 2010 half-year.”
The Bowen Basin in Queensland is the largest coal reserve in Australia and the region accounts for around 56 per cent of the world's exports of coking coal, an essential ingredient in steel manufacturing. The company reported a 24 per cent decline in the production of coking coal in the third quarter, which ended on 31 December.
The report said the heavy rainfall that persisted for much of the late last year “significantly restricted” coal removal. “When combined with disruption to external infrastructure, we expect an ongoing impact on production, sales and unit costs for the remainder of the 2011 financial year.”
But BHP Billiton added its coal sales benefited from a “healthy level of inventory that was held across our supply chain at the commencement of the quarter”.
Spot prices for coking coal having risen above $300 a tonne (£187) this week. Contracts signed before the floods priced the commodity at $225 (£140) a tonne, according to the Sydney Morning Herald.
“As a direct impact of the floods, coal prices have moved rapidly higher, with some estimates indicating that coking coal prices could triple in the short term,” said Australian bank Westpac’s chief economist Bill Evans in a statement.
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