Last Updated: 4/11/2017 2:38:00 AM
The prices of coking coal and iron ore may not see big movements in the current year as global crude steel production is estimated to grow by just 2% in 2013.
Dr AS Firoz chief economist Ministry of Steel said that the global crude steel production is likely to grow by only two per cent in 2013 and with this, there would not be much movement in the coking coal and iron ore prices.
He said that however, pricing pressure could build up if there is a natural calamity like the one witnessed in Australia in early 2011, resulting in skyrocketing of the prices of coking coal.
Dr Firoz further said that "If they (natural calamities) are not there, I do not think that coking coal can be an issue in 2013. There will be stability in the price. I think floor has been reached for coking coal. But, it will not fall below the current price of around USD 200 per tonne. So, it will remain at this stage.”
Dr Firoz further said that "So, if the Chinese steel production comes down, then obviously the demand for iron ore also comes down. Besides, a lot of iron ore mines have been developed globally helping China to secure iron ore from diverse sources. Thereby, its compulsions to get ore from one single country have reduced. Hence, iron ore prices are also getting settled.”