MetalMiner: Steelmakers Welcome Falling Coking Coal Price Trend

Pressure may be easing for steelmakers and with it the prospects, in some regions at least, of slightly improved margins. Coking coal, a key raw steelmaking ingredient and recently one of the commodity markets’ hot darlings, has been falling in price since the summer. As Australia’s spot price has fallen some 26 percent since the end of June last year, the contract price has, with a time lag, followed suit. HSBC reports the Q1 contract price fell 18 percent quarter-on-quarter to US $235 per ton, compared to the spot price around US $225 per ton. As China has stopped buying on the spot market, Australia’s coking coal exports fell 18 percent year-on-year to 120 million tons for the January-to-November period. The bank expects total 2011 exports to fall 16 percent to 134 million tons, partly reflecting the supply disruptions from the Queensland’s flooding in late 2010 and early 2011. To read the full article, click hereSteelmakers Welcome Falling Coking Coal Price Trend

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