Coking coal prices rise to lift steel prices
Thursday, 11 March 2010
MUMBAI, Mar 10 (Commodity Online): World's top coking coal producer BHP Billiton has signed a coking coal deal with Indian steelmakers at $200 per tonne, up 55 per cent from last year's prices.
This is expected to cause major rise in steel prices in India. If India's steel prices go up, it will also impact the prices in global markets.
Last year's benchmark prices were $129 per tonne and were yearly contracts. However, the latest deal is signed only for the first quarter ending June 30, 2010.
The price increase by the Australian company is in line with expectations. Indian steelmakers are largely dependant on imported coal. Tata Steel imports around 30 per cent coking coal, its UK subsidiary, Corus, buys its entire coal from the market. JSW Steel, too, imports 100 per cent coking coal and state-owned Steel Authority of India (SAIL) imports 70 per cent of its coking coal needs.
This is expected to cause major rise in steel prices in India. If India's steel prices go up, it will also impact the prices in global markets.
Last year's benchmark prices were $129 per tonne and were yearly contracts. However, the latest deal is signed only for the first quarter ending June 30, 2010.
The price increase by the Australian company is in line with expectations. Indian steelmakers are largely dependant on imported coal. Tata Steel imports around 30 per cent coking coal, its UK subsidiary, Corus, buys its entire coal from the market. JSW Steel, too, imports 100 per cent coking coal and state-owned Steel Authority of India (SAIL) imports 70 per cent of its coking coal needs.