Europe's largest coking coal producer Jastrzebska Spolka Weglowa expects coking coal prices to decline next year as a result of increased production from Australia, the US and Canada.
"Looking globally there are no substantial elements that demonstrate it [the current higher coking coal price] will become a trend. It's highly likely that coking coal prices will be corrected next year. I think the market prices we have today are temporary and will be adjusted next year," Tomasz Gawlik, JSW's chief executive told a conference in Katowice, the state news agency PAP reported.
Gawlik said the current higher price of coking coal has led to increased production being launched in Australia, the US and Canada.
"That's why prices will not be maintained in the long term," he added. He put the current higher price down to one-off events such as increased demand from China and production stoppages.
JSW's CEO said rising coking coal prices had not been duplicated in either the coke or steel market. He said production at 15 of 75 steel mills in Europe had stopped and operating plants were averaging just 70% capacity.
"We do not see a significant growth in production capacity and demand for steel in the market," he added.
