BS reported that Indian steel companies want to sign coking coal contracts quickly at prevailing rates, expecting future price surge.

During April and May 2012 period, Indian ports received coking coal cargo of about 4.8 million tonnes, 15% lower than 5.7 million tonnes imported in the previous comparable period. However, sources said, the imports went up in May 2012 from April 2012, soon after the international prices slipped.

Mr Aurobindo Prasad Gayan, chief commodity and currency analyst with Karvy Comtrade, said that "Indian steel makers want to sign long term contracts at current prices as they believe coking coal prices are set to rise again in future. By this, the steel manufacturers can have an edge as far as input cost is concerned."

Mr Gayan said that "Companies such as SAIL has already hinted about increasing their coking coal imports by around 15% in 2012. Besides Australia, they are also eying South African mines to meet their requirement."

India imports about 30 million tonnes coking coal every year, mainly from Australia, Indonesia and recently, from South Africa to meet the demand of its ever rising steel industry and to feed the limited demand seen in power sector. Several industry bodies have forecast that 2012-13 imports would top 35 million tonnes on better demand expected in the October to December 2012 quarter.

Source - Business Standard

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