Coal news and updates

Coking coal offers decline 32% in 2015

India Coal Market Watch

December 24: Seaborne metallurgical coal prices fell around 32%, while semi soft variety quoted 24% lower in 2015 as supply continued to remain higher than demand, according to data available with ICMW.

The premium variety was quoted lower at $74.50 per ton FOB Australia on December 22, 2015 as against $110 per ton FOB Australia on December 31, 2014. Peak Down prices were quoted at $75 per ton FOB Australia on December 22, 2015 as compared to $111 per ton FOB Australia on December 31, 2014. The semi-soft variety ended lower at $61.50 per ton FOB Australia on December 22, 2015 as against $80.75 per ton on December 31, 2014.

The bearish trend in coking coal prices is blamed on the slowdown in the steel industry, which is the major consumer of the fuel.

According to reports, spot coking coal prices have hit 11-year low this year. Market sources said that India could grow fast enough to fill the vacuum left by a slowing China, but the country might be constrained by cheap imports of steel coming from across the border.