Global metallurgical coal prices are likely to further tick up in the coming months, following recent increased demand driven up by the recovering appetites, Russia's VTB Capital said.
International coking coal prices have been rallying since September, with semi-soft coking coal rising16-24%, mainly owing to recovering demand from ex-China regions and concerns on possible supply shortage," said a critic of VTB Capital.
Data showed over July-September, Japan's crude steel production increased month by month. The METI forecast the output to keep growing in the fourth quarter.
India's domestic consumption of steel products revived again in August, boosting imports of coking coal, while steel production in Europe and Brazil kept increasing alongside recovery of blast furnaces in September.
Australian Queensland port's vessel loading data showed the weekly coal exports currently are still lower than the year-ago level. Market participants expected Australian coking coal exports may stay at relatively low levels in the short run.
Kpler's cargo-tracking data showed Australia exported 13.86 million tonnes of coking coal in October, falling down 3.8% year on year and dropping 6.07% from a month ago.
In addition, possible La Nina event in eastern Australia also deepened concerns over coal supply shortfall. Thus VTB Capital predicted global metallurgical coal prices may further move up in the coming months.
(Writing by Tammy Yang Editing by Harry Huo)
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