Indian Steel Maker To Pay More For Coking Coal Imports.

BL reported that the Indian steel makers may have to pay more for the imported coking coal in the next quarter beginning July 1.

Steel industry insiders told Business Line that the forthcoming quarterly contracts, which would be finalized by the third week of this month, could see upward price revision. The last revision saw 47% jump.

Indian steel companies largely source coking coal from Australia, where the strikes by the BHP Billiton coal miners from Tuesday provided a fresh trigger for a potential coking coal supply disruption and hardening of prices.

Industry sources said about 3,500 mine workers were participating in a rolling six hour work stoppage on Tuesday and Thursday as also on June 18 at different sites of BHP Billiton Misubishi Alliance in Bowen Basin of Queensland, known for its prime hard coking coal.

The current quarterly contracts price of USD 330 a tonne has been overtaken by the spot price around USD 334 a tonne. Some Indian importers will have to fall back upon the spot market for want of supplies of contracted deliveries.

BHP, Rio Tinto and Xstrata have already told their customers, including those in India, that they might miss deliveries because of disruption in operations owing to the floods.

Source : steelguru.com