Coking coal prices reached record highs in October 2021, with Australian premium coal selling at around $430 a tonne on a free-on-board basis, up from $110-120 a tonne in April. The surge, a rise of about 250 percent in six months, made coking coal the most expensive input for many steelmakers, overtaking iron ore just as iron ore prices collapsed. Chinese buyers were paying more than $500 a tonne delivered, as the unofficial ban on Australian coal, tight domestic supply and logistical problems in Asia combined to create acute scarcity. Steelmakers in China faced record costs even while their own output was being cut, squeezing margins from both sides. Analysts said the rally looked unsustainable: Chinese steel consumption was falling, and the high prices were encouraging new supply. But in October the market was still tight, and the price of coal, unlike iron ore, showed no sign of following Chinese steel output down.
Source: Hellenic Shipping News (ABC News) — https://www.hellenicshippingnews.com/coking-coal-price-hits-record-highs-as-chinese-steel-makers-face-pain/
Photo: Wikimedia Commons (freely licensed).