Seaborne coking coal prices continued their northward march on sustained Chinese buying of the material, industry sources said.
According to information available with Steel Insights, the premium variety was quoted higher at $208 per ton FOB Australia on August 30, 2017 as against $179 per ton FOB Australia on July 31, 2017. Peak Down prices were quoted at $209 per ton FOB Australia on August 30 as compared to $180 per ton FOB Australia on July 31.
The current rally in spot coking coal prices is driven by strong demand from Chinese steel mills, which are concerned over supply issues in Shanxi and Mongolia, market sources said. Given the firm demand, prices are unlikely to reverse the trend at this juncture, they said.
Higher steel prices are motivating China’s steel mills to lift production rates. While there are fundamental factors supporting this high production growth, speculative interest in steel contracts is also inching higher. Higher steel production in China bodes well for steel making raw materials like coking coal and iron ore, industry experts say.
This story is from the September 2017 edition of Steel Insights.
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This story is from the September 2017 edition of Steel Insights.
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