Fitch Solutions maintains its forecast for an average coking coal price of $195/t for this year, stating that prices will remain elevated, with strong demand from China’s steel sector, as US–China relations continue to deteriorate and the probability rises of further economic support from the Chinese government towards domestic industries.
On the supply side, the consultancy company expects production misses from Australia to keep the coking coal market tight in the coming quarters as large diversified miners lose their appetite for mining coal.