Since July, spot coking coal prices have increased from $ 90 per tonne to $ 279 per tonne. Coal contracts in the fourth quarter of 2016 were sealed at $ 200 per tonne, an increase of 116% over the third quarter. The cost of coking coal is 30-50% of the production value of steel producers who use blast furnace technology.
The main reason for the increase in coking coal prices was the modernization of domestic production in China, which prompted it to import coal. The Chinese government has set a goal to cut capacity by 500 million tons over the next five years. In addition, there were problems with supplies from Australia.
Steel turns out to be more expensive due to coking coal price surges. Much of the impact of the increase in coking coal prices is likely to be felt in the fourth quarter, as the inventory period of imported coking coal for metallurgical companies is 70-90 days.
Not so long ago, the prices for HRC in India hovered around $ 250 per ton, and now it is at around $ 450 per ton. About 44% of India's steel production uses blast furnace technology. Cheaper imports from China, South Korea and Japan have put the metals industry in a tough spot in many of the world.
Rolled steel producers increased prices amid surge in coking coal prices
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Azovpromstal® 8 November 2016 г. 12:25 |
