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Awaiting a decisive price recovery…

? International coking coal prices have been on a roller coaster ride during CY23. With coking coal having sustained above the $300/t mark over the last month and global steel prices still hovering in the $540 – 560/t range, the steel spreads are taking a hit.

? Chinese pricing has been under pressure for quite some time now. Weak domestic demand, surplus production capacities and extensive exports have suppressed steel prices well below the $600/t mark.

? As per WSA, steel production in China is expected grow by a mere 2% YoY, which is a dismal show compared to past years. Given weak domestic demand, Chinese producers have been forced to dump low-priced steel in global markets including India.

? India has been importing cheaper steel from China, Korea, and Vietnam over the last six months, clearly a bleak scenario for domestic players. However, strong domestic demand is likely to keep the steel outlook positive for the domestic players for the foreseeable future.

? Chinese exports reached 75.47 mt during the Jan-Oct’23 span, 34% higher than steel exports from the corresponding span in CY22.

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