India: The great coal run, steelmakers feel the pinch

[phantom power]

WINDHOEK - Indian steelmakers were this week reportedly paying US$600 for a ton of imported coking coal after the price shot up from US$200. As steelmakers the world over became very concerned about the cost and supply of coking coal, the world's second largest steelmaker, Nippon Steel was forced to cut its profit forecast.

Anglo-Dutch steelmaker Corus, owned by Tata Steel, warned that higher coal prices would push wire rod prices 'substantially higher' for deliveries from April 28. Corus, which has already raised wire rod prices by between £70 and £90 a ton on deliveries from March 31, is unable to specify the level of further price increases due to the uncertainty in coal prices.

(...)

While prices for all steel products have been driven up by a combination of rising iron ore, scrap metal and energy prices and lower exports from China, coal supplies are extremely tight on international markets and stocks at many steelmakers are being depleted to dangerously low levels.

Floods and port congestion in Australia, as well as the suspension of coal shipments from other major suppliers like China and South Africa following power shortages that will require replenishment of utility stocks, have made the situation worse forcing steelmakers to turn to the spot market, where prices are about triple those in term contracts.

http://www.mineweb.com/mineweb/view/mineweb/en/page38?oid=49347&sn=Detail

[mac2]

1. How many countries are becoming rich on our backs?

In India I bet it is the top elite who do get rich just like in China and the US.

We cut off our mountain tops in WV for coal. Where is it going?