Coking coal prices may rise 20%
Global coking coal prices could rise nearly 20 per cent in the second quarter of 2011 from current prices, with heavy demand from China, Brazil and India amid tight global supplies, said a consultant on international coal markets.
According to Gerard McCloskey, chairman and founder of the McCloskey group, which specialises in data and analysis of the sector, there would be frenetic corporate activity in the coal space. McCloskey was speaking at an event organised by IPF Online and the Bengal Chamber of Commerce and Industry.
“There will be immense corporate activity pushing assets to new highs,” McCloskey said. Demand apart, supply constraints were pushing up prices. There has been a spate of coking coal closured in China.
“This year, China’s coking coal imports could be more than 40 million tonnes, up from 34 million tonnes last year,” McCloskey said. For domestic steel majors, it would mean a significant cost push. Indian coking coal is of poor quality and requirements are mostly met through imports.