Mining companies and industry experts/analysts foresee a dim outlook for metallurgical coal as weak global demand for steel along with increased metallurgical coal supply is exerting downward pressure on its prices.
The third quarter witnessed reduced demand from steel producers in Europe, which not only implied lower demand for coking coal but also led to increased supply in China, as the US metallurgical coal exporters who were exporting to Europe had to now send their shipments to China where they were forced to compete for lower margins with Australian producers.
Also in this report:
- Sector facing regulatory headwinds
- Supply and demand
- Key developments
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