October 08, 2008

Gujarat NRE riding coking coal wave

The worldwide increase in steel production has led to a higher demand for inputs such as coking coal. Hence, it’s no surprise that the long term contract price of coking coal has surged by 200% as compared to last year to around USD 300 per tonne.

Though this has a cascading effect on steel products, coking coal miners and metallurgical coke manufacturers are set to gain from this trend. Gujarat NRE Coke Limited is one such player which manufactures met coke and mines coking coal. Looking at the current steel demand scenario and the coking coal supply problem in the international market, the prices of both these products are expected to remain robust in the near future.