Ferrous prices in Asia are rising at a steady pace and look likely to surpass 2008's high levels as early as next month, industry sources told Fastmarkets this week.
Coking coal and coke
Supply tightness in both the domestic and import markets for high-quality, low-sulfur hard coking coal should continue to support prices in May, sources said.
Since the start of April, domestic supply shortages have been exacerbated by
monthly safety inspections at coal mines in north China's Shanxi province. Some small and mid-sized local mines have been fined and forced to shut down for safety facility improvements since the inspections, according to local government announcements.
Market participants said the regular inspections of coal mines might continue through May, even after the recent long checks, because of the Shanxi government announcement, on March 16, that it plans to carry out regular spot-check safety inspections on 42 coal mines throughout 2021. The introduction of inspections follows several safety incidents at mines in Shanxi and other provinces across China in the first quarter of the year.
Fastmarkets' price assessment for...