Coking coal price rise likely to delay margin recovery of steelmakers

The domestic market has also seen a sharp correction in steel prices from peak levels

Rising coking coal prices — a key raw material — may be a spoiler in the margin recovery of steelmakers. After peak levels in April, coking coal was on a downward trend.

But prices of hard coking coal FOB Australia have increased by around 58 per cent from July-end. This may add to the concerns around margins.

“High costs in the current quarter with over-corrected steel prices have contracted margins. Raw material prices have come off their peaks and costs will come down and margins should be better in Q3. But in the last 2-3 weeks, coking coal prices have