Global coking coal market remained moving low price groove for the past 18 months in tandem with the sinking fortunes in steel industry. As capacity rationalization takes center stage with abysmal finished demand and industrial growth supply-demand dynamics has tilted unfavorably. Price of coking coal after the surfeit in spring of 2011 touching USD 330 per tonne on force majeure condition has evaporated.

Emergence of USA as competitive supplier has altered market dynamics significantly with price levels hovering in the band of USD 150-172 per tonne in subsequent quarters. However the spot price remains even worse at USD 140-150 per tonne.