coking coal price

Indian steel companies are trying to quickly sign long-term contracts to import coal at prevailing rates because they think that the coal prices in the international market may increase soon, according to a Business Standard article.

According to the reports, currently coking coal prices in international markets are down by some $10-$15 per ton to $220 a ton, as supplies from Australia have improved recently.

Citing commodity and currency analysts, the report says that Indian steel producers already have agreements for coal in overseas countries. A few steelmakers have even acquired coal blocks in other third-world countries to secure the primary fuel for their steel mills.

On the domestic front, the state-owned Coal India Limited (CIL) is the only source for coal supply for steel mills, power producers and other industries.

Power companies are the biggest consumers of coal in India and these companies are already facing huge fuel shortages. India is the third-largest producer of coal, but the CIL is unable to fulfill the demand — the coal miner is under pressure because of a huge demand/supply gap which has only increased on a year-to-year basis over the last several years.

According to rating agency ICRA Limited (formerly Investment Information and Credit Rating Agency of India Limited), the domestic demand-supply gap of coal may considerably widen in the medium- to long term.

As per India’s Annual Plan 2011-12, the total indigenous coal supply is planned at 559 million metric tons as against the estimated demand of 696 million tons.

However, at present, Coal India produces 436 million tons of the fuel and plans to enhance this capacity to 464 million tons by the end of the current financial year (2012-13).

It is believed that the gap in demand and supply from domestic sources would exceed 200 million tons by 2017, at the end of a five-year plan period.

Reports suggest that India could import about 114 million tons of coal in 2011-12. India bought about 82 million tons of coal in 2010-11.

Against the overall coal import target of 142 million tons this year, the power sector has been given a target of 55 million tons, and the steel sector 30 million tons.

India imports coal from Indonesia, Australia and South Africa. Until recently, Indonesia was the preferred choice for coal imports by the Indian firms, but as the new coal policy in Indonesia has revised prices, the Indian companies are trying to find other sources.

Now most Indian steel and power companies are looking toward Australia and South Africa for their coal imports. After recovering from flood situations and strike problems, Australia is offering attractive coal prices.

Reports suggest that India currently imports some 30 million tons of coking coal every year, but forecasts suggest that during 2012 and into 2013 imports would top 35 million tons.

TC Malhotra contributes to MetalMiner from New Delhi.

Weakening prices changed direction when the cash price of steel billet rose 1.4 percent on June 19, 2012 on the LME to $355 per metric ton. The 3-month price of steel billet rose 1.4 percent on the LME to $365 per metric ton after a two-day drop.

Chinese steel prices were flat for the day. The high and low prices of iron ore 58% fines from India ranged between $130 and $135 per dry metric ton. Chinese HRC held its value on Tuesday above $650 per metric ton. The price of Chinese coking coal stayed unchanged.

The 3-month price of the US HRC futures contract showed little movement yesterday, hovering around $625 per short ton. The spot price of US HRC futures showed little movement on Tuesday at $620 per short ton.

With a decline of 4.1 percent on the LME to $350 per metric ton on June 18, 2012, the steel billet cash price recorded the biggest shift of the day on our daily steel price index. The 3-month price of steel billet weakened by 2.7 percent on the LME, settling at $360 per metric ton.

Chinese steel prices were flat for the day, while US HRC futures remained steady.

Read more

With a decline of 2.7 percent on the LME to $365 per metric ton on June 15, 2012, the cash price of steel billet recorded the biggest shift of the day on our steel price index. Also on the LME, the steel billet 3-month price declined 1.5 percent to $370 per metric ton.

Chinese steel prices were flat for the day. The high and low price of iron ore 58% fines from India ranged between $125 and $130 per dry metric ton. Chinese HRC saw little change in its price last Friday, and for the fifth consecutive day, the price of Chinese coking coal held flat.

The 3-month price of the US HRC futures contract showed little movement last Friday at $625 per short ton. The spot price of US HRC futures contract saw little price change last Friday at $620 per short ton.

Profit margins of Indian steel companies may remain under pressure for the next few months, even as steel producers have urged the government to provide them export incentives to help battle overseas competition.

Cheap imports notwithstanding, steel companies currently face pressure on several other fronts including the one imposed by the largely falling rupee vis-a-vis the US dollar. A slowdown in sector growth due to lower demand by automobile and manufacturing sectors has also added to the woes of producers.

Read more

The day’s biggest mover on our steel price index was the steel billet cash price which dropped by 2.9 percent on June 12, 2012 to close at $339 per metric ton on the LME. Also on the LME, the 3-month price of steel billet declined 2.9 percent to $340 per metric ton.

This comes after clients told the LME to review and overhaul the way the LME billet contract works, due to disgruntlement over slow delivery times and the disconnect between physical and futures steel prices, according to Reuters.

Chinese steel and raw materials, including coking coal and iron ore prices, were flat for the day.

Read more

On June 8, 2012, the day’s biggest mover on our steel price index was the LME steel billet 3-month price, which saw a 9.9 percent decline to $360 per metric ton. After two changeless days, the cash price of steel billet fell 7.8 percent on the LME to $359 per metric ton.

Chinese steel prices were flat for the day, but iron ore prices dipped below their usual range.

Read more

On June 5, 2012, the day’s biggest mover on our steel price index was the 3-month price of US HRC futures, which saw a 1.2 percent decline to $642 per short ton. The spot price of US HRC futures contract held steady on Tuesday, remaining around $630 per short ton.

Chinese steel prices and raw materials prices were mostly flat for the day, following a general dip over the past month.

Read more

The monthly Raw Steels MMI® registered a value of 95 in June, a decrease of four percent from 99 in May.

The Raw Steels MMI® had held fairly steady between March 1 and May 1, but fell this past month along with all of the other MMI® index values. The Raw Steels MMI® baseline began on January 1, 2012 with a reading of 100. This report serves as the first public release of this data.

Source: MetalMiner IndX℠

“For industrial buying organizations attempting to better understand the cost of steel products, this Raw Steels MMI® report covers the global raw material price trends impacting steel producers,” said Lisa Reisman, managing editor of MetalMiner. “Only by analyzing these input costs from a variety of global price drivers can a buying organization assemble a cost model reflective of the underlying price trends that most directly correlate to steel prices.”

“Steel held up comparatively well,” Reisman continued, “yet the European and Chinese slowdowns have had an impact on steel pricing; demand has started to slow in the US as well. We’ll need to see if this is a one-month market blip or a longer trend.”

The Drivers for the Steel Price Index Decrease

After falling 20.2 percent, the steel billet 3-month price finished the month on the LME at $387 per metric ton. The cash price of LME steel billet fell 17.4 percent over the past month to $385 per metric ton. A 7.6 percent decline for Chinese slab left the price at between $625 and $650 per metric ton. The price of Chinese billet fell 4.4 percent, while the US HRC futures contract 3-month price ended the month at $650 per short ton. Last month, US shredded scrap prices dropped by 0.9 percent.

On the other side of the steel coin, Korean steel scrap shifted up 2.3 percent last month. The US HRC futures contract spot price rose a slight 0.8 percent over the past month to $660 per short ton.

Last month was consistent for Chinese coking coal, which did not move. Korean pig iron also remained unchanged.

The Raw Steels MMI® collects and weights 13 global steel and raw material price points to provide a unique view into global steel price trends over a 30-day period. MetalMiner will publish the monthly MMI® reports during the first week of the month, every month. Paid subscribers have access to all the data on the first of the month and can also obtain the actual price points for constituent elements that comprise the Raw Steels MMI®.

Get Started – Subscribe Today

For more information on the Raw Steels MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.

On June 4, 2012, the day’s biggest mover on our steel price index was the US HRC futures contract spot price, which saw a 4.5 percent decline to $630 per short ton. The 3-month price of US HRC futures contract showed little movement on Monday, hovering around $650 per short ton.

Chinese steel prices, meanwhile, closed flat for the day.

Read more

1 101 102 103 104 105