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US steam coal prices CIF India may stay unchanged

31 Mar 2016

Prices of US-origin steam coal, that have high sulphur and high calorific value, are likely to remain unchanged in the medium term as there is no immediate possibility of demand rising from brick kiln-makers in Uttar Pradesh, feel industry sources.

 

“There had been a slight improvement in prices in recent days from a low of about $56-57 per ton, but now it is likely to remain stable at around $58-60 per ton CIF India,” they said.

 

Except for a few sectors, US steam coal is largely used by brick kilns in northern India.

 

“Brick kilns makers in Uttar Pradesh are facing some issues… the state government is asking all such units to procure pollution licenses. A number of brick kilns are not able to comply with this requirement and thus they are not operating at full capacity,” sources added.

 

“Whenever there are raids conducted by the SDM, the brick kilns are shut for a few days. They re-start operations after the situation normalises. This is disturbing not only for brick production, but coal demand as well, leading to a rise in brick prices,” a source in eastern Uttar Pradesh told ICMW.