With the declining demand and supply is more relaxed, high-quality hard coking coal prices in the spot market recently fell below the negotiated price. Still, the market generally believe that future prices will fall further, due to demand difficult to pick up and supply is expected to further increase. Bloomberg (Bloomberg) before the report even said that coking coal prices will bottom out within two years to reduce due to demand in Europe and China's move to Mongolia to get supply.
Affected the profitability of the coking coal producers will be significantly under pressure, some manufacturers may take cuts or other measures to stabilize the market, but the rapid growth from Mongolia and other emerging supply source. Analysts expected profit may drop 24 percent to $ 17.9 billion BHP Billiton 2011/2012 fiscal year (July 2011 ~ June 2012).
Low demand buyers hard to find
The deepening of the EU debt crisis dragged down commodity demand and prices, forcing the world's largest steel manufacturer Arcelor ArcelorMittal to shut down and idle mills in Europe. The slowdown in economic growth in China so that the probability of steel production to rise, further weakening demand for coking coal. Chinese steelmakers may reduce production in August and September in order to ensure the profitability of hot-rolled steel prices in China on the market in early August dropped to 3695 yuan / ton, the lowest point since November 2009. China's steel prices decline faster than the rate of decline of the prices of raw materials, which may lead to some of the high cost of steel production capacity is shut down, director of commodity research at ANZ, Mark Pervan said.
The analyst pointed out that the very weak demand for steel in Europe, in recent months consumption slowed sharply, the second half of the year will be worse off, because government spending slowdown and banks to stop lending for home users; unless the United States, Europe otherwise, the global steel demand will remain sluggish and the stimulus measures.
According to data released by the International Iron and Steel Institute, the European Union in June this year, steel production was only 14.73 million tons, the lowest monthly output since June 2009; the production of 88.934 million tons in the first half, down 4.6 percent.
Other News:
Japan has been ordered to intercept the Diaoyu Islands fleet of China cross-stra
Demand low supply l the international coking coal market prices will continue do
German parts maker to consider listing
Factors in the recent steel prices
China is expected to become the largest market in the SKF.
The social stock of steel for three weeks down the narrowing of the year on year
Iran earthquake caused 250 deaths and more than 2,000 people injured
Industry downturn, the high cost of the steel industry faces transformation pred
