Coal news and updates

International coal prices have bottomed out: KISPL

International coal prices appear to have bottomed out and from here things should only turn for the better, feels Vipin Mahan, Director of Knowledge Infrastructure Systems Pvt Ltd (KISPL).

“We see the market bottoming out and very little risk or limited downward risk in index- based contracts, which are offered by markets today,” Mahajan said.

According to him, much of the weakness in prices witnessed during the past several quarters was due to oversupply in the market, but with some mines closing down or reducing production, things are likely to improve.

“Commodities have seen the worst and in worst-case-scenario some managed to survive. If the low prices continue for another 6-8 months, there will be more people who have to exit,” he feels.

“Today the outlook, as far as I am concerned, is stable-to-positive. Last year it was negative. Four months back it was stable-to-negative, but for the new few quarters, I would say it is stable-to-positive,” Mahajan said.

“If I have to do contracts today for the next three months, I would perhaps sign, but three months back I would have said, g’ive me one shipment and I will sign the next shipment 15 days later’. Today, it is reverse. It’s a stable-to-positive outlook, may be a slim positive outlook, but I don’t see too much of a downward risk,” Mahajan said.