It is the fuel from coal through the process of coke produced. It is one of the most preferred fuel for smelting are used in the oven. Steel production is a huge industry that makes use of coke as fuel. This has led to a worldwide increase in demand of coke from coal.
As a result there is an increase in demand and the price of coke in the past few years. Given the demand for coking coal buyers can expect the trend to continue for the coming year. Here is a discussion of current trends and future expectations of coking coal and demand.
A country that has contributed greatly to the increase in coke prices is China. The country's total steel output of more than 600 tons per year today. This certainly has the demand for coking coal for steel production and has to continue. In 2009, China imported more than 30 tons of coke. This sharp increase in demand has forced the prices of coke explode. It is amazing to increase the coke price of $ 129 to $ 200 per ton in to see the difference of one year.
After China the second country that has experienced an increase in demand for coking coal in India. Although the land of the steel production of 60 tons per year is far from that of China. The country's steel production growth rate is higher than that of China and this has the expectation that the steel production of the country's double-tagged by 2012. And experts in the industry strongly believes that the 200 tons of shades tick a few years later. This will certainly lead to an increased demand for coking coal buyers in the country.
As far as the European countries and in the Americas, they are also expected to increase their demand for coke. Coke is used as the preferred means for the furnaces in these countries. The time of recession, of course, had a negative impact on imports of coke of these countries. When the time of recession is increasing, these countries start again import more of the coking coal.
Another important development in the industry that the annual contracts were moved to three month contracts. BHP of Australia, the world's largest mining company, recently the first contract with JFE Steel used in Japan. Under the contract price of coking coal at $ 200 per tonne. The trend of quarterly contracts further drive the prices of IT. Yes, that's expected to indulge in the mines and coke production, large gains in the near future to do.
You can expect to beat the price per ton to $ 300 mark. In addition, the continued rising demand of Coke to put pressure on global supply and demand curves.