Steel sector slump is pushing down coking coal prices sharply in China. Coking coal prices dropped by more than 30 percent from August to Oct, except hard coking coal prices. On Nov 4, China's largest coking producer, Shanxi Coking Coal Group, suddenly announced 30-45 percent cuts in its 2009 contract prices of coking coal, with prices of hard coking coal cut from 1800 yuan/ton to 1300 yuan/ton, and those of soft coking coal to 850 yuan/ton or so.

The sharp price cuts astonished the market, but within market expectations of 2009 price outlook. It is believed that there might be some room for further price decline in 2009 since the steel sector can hardly pick up next year.

David Fang, president of CoalWorld.net, was invited by IBC to make a presentation concerning Chinese coking coal market at the China Steel 2009 held in Beijing on Nov 6, 2008, his presentation is now available to CoalWorld.net subscribers for free download for internal research purpose only.

CoalWorld.net