Coking coal price rise not surprising; would be closer to $400 in FY23: ICRA

The overarching global theme has been rising coal and energy cost across the globe. That has hit the profitability of a lot of industries. Coking coal prices have doubled after the US sanctioned Russia severely affecting Indian steel companies. Ritabrata Ghosh, Sector Head and AVP at ICRA shared his views on the same.

Coking coal prices rising was not surprising as Russia accounts for around 10 percent of the international trade in coking coal, he said.

He expects that these levels of elevated prices slowly and steadily – as the trade imbalance gradually readjusts with the changing demand-supply balance – over the period of the financial year 2023 will settle. “In Q4 of FY23, we expect prices to be somewhere between $300 and $350. So for the full year as a whole, we are saying that prices would be closer to $400 in the base case,” he said.