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Coking coal prices to stay above USD 200 in Q1 -Nippon Steel & Sumitomo Metal

Steel News - Published on Thu, 07 Dec 2017

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Reuters reported that Nippon Steel & Sumitomo Metal Corp expects coking coal to stay above USD 200 a tonne through the January-March quarter amid lower supplies from Australia, which may drag on its earnings. Toshiharu Sakae, Nippon Steel’s executive vice president, told Reuters “The recent jump reflected tighter supplies in Australia. Slower output at some Australian mines following cyclones earlier this year and renewal works of some loading facilities at a Queensland port lent support to the prices.”

He added “Demand is not particularly heavy in China as it is going through a seasonal output cut, but demand in India is growing gradually.”

And while higher raw material costs would hurt the steelmaker’s earnings, solid demand for steel products at home and abroad could offset such expenses, he said.

Australian premium coking coal futures in Singapore have surged nearly 30 percent from a November low of USD 174 to above USD 220 a tonne in the first few days of December.

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Posted By : Nanda Koijam on Thu, 07 Dec 2017
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