www.unuudur.com » Death of the coking coal contract

Death of the coking coal contract

[Нийтэлсэн: 16:00 02.12.2016 ]

www.mining.com

Coking coal prices retreated on Friday, but only slightly, holding above $300 a tonne after two months of insane gains.

According to data provided by the Steel Index premium Australia hard coking coal prices have tripled since the beginning of July exchanging hands for $308 this week following multi-year lows around $70 a tonne in November last year.

The surge in seaborne price is wreaking havoc on markets for the steelmaking raw material which is still traded on a quarterly contract basis.

Japanese steel mills and various Australian producers agreed to a price of $200 a tonne for premium coking coal deliveries over the last quarter of the calendar year.

While this represents a rise of 116% over the previous quarter, it’s of course a very long way away from spot prices.

With first quarter 2017 negotiations due to kick off soon, how much longer producers will tolerate this discrepancy is unclear, but most bets are on met coal moving increasingly to a spot market just like the iron ore trade did a couple of years back.

The seaborne coal rally was spurred by supply issues after Beijing’s decision to limit coal mines’ operating days to 276 or fewer a year from 330 before as it seeks to restructure the industry.

Chinese government stimulus plans which saw steel production pick up only added fuel to the fire, but much of the latest gains and volatility have been blamed on credit-fuelled speculation on futures markets in China, and may not reflect real demand.

Frik Els



Шинээр

Mongolia Celebrates 60 Years in the United Nations
[Нийтэлсэн: 03.11.2021 ]
[Эх сурвалж: ]
SouthGobi Announces Profit Warning and Business Update
[Нийтэлсэн: 29.10.2021 ]
[Эх сурвалж: ]
Coal truckers stuck at Mongolia-China border
[Нийтэлсэн: 29.10.2021 ]
[Эх сурвалж: ]
Chile protests take toll on Antofagasta quarterly output
[Нийтэлсэн: 23.01.2020 ]
[Эх сурвалж: ]
Metallurgical coal prices starting to slip: Fitch
[Нийтэлсэн: 02.10.2018 ]
[Эх сурвалж: ]
Copper price plunges to 1-year low
[Нийтэлсэн: 14.07.2018 ]
[Эх сурвалж: ]
Global Religion and the United Front: The Case of Mongolia
[Нийтэлсэн: 11.07.2018 ]
[Эх сурвалж: ]
Thermal coal prices hit 6-year high
[Нийтэлсэн: 09.07.2018 ]
[Эх сурвалж: ]
Former Rio Tinto exec jailed for corruption in China let free
[Нийтэлсэн: 09.07.2018 ]
[Эх сурвалж: ]

Get Flash to see this player.