<p>India’s aspirations to become a major steelmaker will help lift metallurgical coal prices and offset concerns about China’s sluggish recovery, according to an Australian producer. </p><p>Infrastructure-related stimulus packages in India will drive demand for the blast-furnace fuel, Coronado Global Resources Inc.’s Chief Executive Officer Douglas Thompson said Tuesday. </p>.Jindal Stainless seeks govt intervention to check surging steel imports.<p>That comes as the nation prepares for elections next year with a “fair amount of stimulus” likely in the lead up to voting, he said.</p>.<p>“India is, I think, the shining light on the horizon,” Thompson said. That marks a contrast with China, where the impact of recent stimulus measures are struggling to gain traction, he said.</p>.<p>Indian demand for coking coal, while currently weak, is expected to return — and continue expanding — once the country’s monsoon season ends later this year, Coronado said in an earnings statement. </p>.<p>The nation is investing more in steel, with the intensified focus on production likely to persist well beyond a bid to win election support, Thompson said.</p>.<p>That would be good news for metallurgical coal producers, which have seen prices more than halve after hitting a record in March 2022. The declines have been driven by broad global economic uncertainty, and concerns over China’s struggling recovery in particular. </p>.<p>Coronado on Tuesday said net income slumped 65% in the six months through June from a year earlier after second-quarter realized coal prices fell 32 per cent to $219.50 a ton. The company sees prices above $235 for the remainder of 2023 and into 2024. </p>.<p>Steel is being increasingly seen as a critical ingredient in the green transition, Thompson said, which will help drive an “accelerated supply-demand imbalance.” </p>.<p>While the producer doesn’t supply much volume to China, “more stimulus and large stimulus” from policymakers there should help support prices.</p>.<p>“We see buoyancy and steel demand going forward in the short term, but particularly in the long term,” he said.</p>.<p>Coronado earlier this year confirmed it’s bidding for two of BHP Group Ltd.’s Australian metallurgical coal mines and expects the assets will be sold by the end of the year. </p>.<p>Thompson declined to give any further details on the bidding process, but said that he expected the sale to “attract a strong field.”</p>
<p>India’s aspirations to become a major steelmaker will help lift metallurgical coal prices and offset concerns about China’s sluggish recovery, according to an Australian producer. </p><p>Infrastructure-related stimulus packages in India will drive demand for the blast-furnace fuel, Coronado Global Resources Inc.’s Chief Executive Officer Douglas Thompson said Tuesday. </p>.Jindal Stainless seeks govt intervention to check surging steel imports.<p>That comes as the nation prepares for elections next year with a “fair amount of stimulus” likely in the lead up to voting, he said.</p>.<p>“India is, I think, the shining light on the horizon,” Thompson said. That marks a contrast with China, where the impact of recent stimulus measures are struggling to gain traction, he said.</p>.<p>Indian demand for coking coal, while currently weak, is expected to return — and continue expanding — once the country’s monsoon season ends later this year, Coronado said in an earnings statement. </p>.<p>The nation is investing more in steel, with the intensified focus on production likely to persist well beyond a bid to win election support, Thompson said.</p>.<p>That would be good news for metallurgical coal producers, which have seen prices more than halve after hitting a record in March 2022. The declines have been driven by broad global economic uncertainty, and concerns over China’s struggling recovery in particular. </p>.<p>Coronado on Tuesday said net income slumped 65% in the six months through June from a year earlier after second-quarter realized coal prices fell 32 per cent to $219.50 a ton. The company sees prices above $235 for the remainder of 2023 and into 2024. </p>.<p>Steel is being increasingly seen as a critical ingredient in the green transition, Thompson said, which will help drive an “accelerated supply-demand imbalance.” </p>.<p>While the producer doesn’t supply much volume to China, “more stimulus and large stimulus” from policymakers there should help support prices.</p>.<p>“We see buoyancy and steel demand going forward in the short term, but particularly in the long term,” he said.</p>.<p>Coronado earlier this year confirmed it’s bidding for two of BHP Group Ltd.’s Australian metallurgical coal mines and expects the assets will be sold by the end of the year. </p>.<p>Thompson declined to give any further details on the bidding process, but said that he expected the sale to “attract a strong field.”</p>
