Problem is that the Chinese are behind the manipulation of coking coal! There is no current shortage of coking coal supply. Mega mines in Mozambique are grossly mismanaged and idle. Mines like Norwich Park are still on care and maintenance. Above USD 160 all the USA mines that have been idled are viable.
Just think, how/why did they do this? To get rid of inefficient mines in China, not likely.
With the ringing of the bell, the mines producing for 276 days return to 332 days. And down goes the coking coal price.
So why would they do this?
China has more coking coal than Australia could ever dream of. They import a small percentage of their consumption. so swinging to increase % imported has little effect on their steel input costs. However the increase in imports puts the seaborne trade into imbalance.
So China's steel cost is little changed so they can continue to market their excess capacity. Meanwhile South Korea, japan, Brazil etc import virtually 100% of coking coal requirements @ USD 200/tonne. India imports a massive % of coking coal requirements.
So China has all these nations by the dongas. Australian coal mines may get a couple of Qtrs at these prices but then they will drop but hopefully to themed 100's.
