Global metallurgical coal prices may fall as China virus weighs on steel production

KOLKATA: The direct impact on metallurgical coal imports is, initially at least, likely to be relatively muted, predicts analysis firm Wood Mackenzie.

“Production at (Chinese) coastal (steel) mills is currently strong, and we expect there won’t be a huge change in import trends as a result of the virus outbreak. Availability of high stocks from customs clearance delays in 2019 are a bigger driver of import sentiment. However, metallurgical coal prices are likely to be affected in China, by both sentiments, and a direct loss of demand at mills affected by the lack of workers, or lower demand for steel products. Inevitably there will be some transmission of this price weakness into seaborne markets,” said Wood Mackenzie in a recent report.