Metallurgical coal outlook dims even as demand dwindles in India, China

The Southwest Monsoon covered India on July 2 last year, with the rains sweeping in from the south from May 22 onward, before retreating southward from September 20 until October 15, data from the India Meteorological Department showed.

The strong steel performance currently being seen in India is also not consistent across sectors, with government infrastructure spending and some tiers of consumer spending propping up steel demand.

“Some segments of lower-tier consumption are still not strong, so only government infrastructure and some parts of top-tier consumer spending are present and supporting demand,” a trading analyst in Singapore told Fastmarkets.

The last round of restocking in late April/early May has also ceased, and many spot buyers have largely fulfilled their requirements, a second trader source in India said.