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Coking Coal Surges Amid Winter Steel Stockpiling
7 Dec
Summary
- Coking coal imports climbed 12% as steel mills restocked for winter.
- Overall coal imports fell 3.9% due to ample domestic supply.
- Future imports are expected to remain low with increased domestic production.
Coking coal shipments saw a notable 12% increase in October, reaching 5.04 million tonnes, driven by steel mills engaging in winter restocking. This critical component for steel production saw higher demand as manufacturers secured raw materials ahead of the colder months, anticipating potential logistical challenges.
However, this surge in coking coal imports contrasted with a broader trend of declining overall coal imports. Total coal shipments for October fell by 3.9% to 20.97 million tonnes compared to the previous year. This decrease was attributed to the healthy availability of coal within the domestic market.
Industry outlook suggests that coal import levels are expected to remain subdued through the fourth quarter. Officials are also emphasizing initiatives to boost domestic coking coal production and consumption, aiming to further reduce reliance on imports.
