It is reported that FELIX Resources has not seen any changes in coking coal demand despite wide ranging steel output cuts.

Mr Brian Flannery MD of FELIX Resources said that October 2008 was the best month Felix had recorded. He added that “We supply north Asia and India, and we’ve not seen any changes in demand. Steel mills are continuing with blast furnaces, though some electric furnaces have shut down.”

Fellow Australian coking coal producer Macarthur Coal earlier said that it was bracing for a downturn in demand in the next two to three months, and major shareholder ArcelorMittal has reportedly lowered its requirement for Macarthur’s pulverized coal product.