Coking coal market off late has exhibited signs of firming up in the spot market despite Chinese sluggishness. Demand in rest of Asia viz., Japan seems strong. Under the new economic policy of PM Abe Japanese mills are showing distinct signs of hiked steel production as construction and export picks up in Japan. Europe is starting to come back and is neutral to positive in the short term with winter stocking of steel and coke likely to pick up in the coming month.

Indian demand has distinctly improved, with a major steel mills fishing in the market for Q3 booking. Moreover stable currency with an expected pick up in steel demand during Q3 and Q4 is providing traction to sentiments.

Current spot levels at nearly USD 140 per tonne is shade below the quarterly price of USD 152 per tonne, FOB improvement seems inevitable.