Coking coal prices expected to moderate as steel rates slide
Coking coal prices are expected to moderate going forward and are unlikely to sustain at the current high levels, according to a latest research note by ratings agency ICRANSE 1.61 % Limited.
With steel prices sliding from the highs of calendar year 2018 due to trade tensions and a slower pace of economic growth, coking coal prices are yet to follow suit,adding pressure on the margins of steelmakers.
However, this is not likely to continue, says ICRA’s latest findings on the issue. This apparent decoupling between coking coal and steel prices is unlikely to sustain over a longer timeframe and coking coal prices are expected to moderate going forward, it said.