Met coal demand to outweigh coronavirus impact: Spindler

WHILE the coronavirus is forecast to impact short-term steel demand in China the fundamental demand for Australian metallurgical coal remains strong, according to Coronado Global Resources CEO Gerry Spindler.
Met coal demand to outweigh coronavirus impact: Spindler Met coal demand to outweigh coronavirus impact: Spindler Met coal demand to outweigh coronavirus impact: Spindler Met coal demand to outweigh coronavirus impact: Spindler Met coal demand to outweigh coronavirus impact: Spindler

While the coronavirus is forecast to impact short-term steel demand in China the fundamental demand for Australian metallurgical coal remains strong.

He said a stimulus package was expected to be implemented in China once the outbreak was contained.

"It is expected that steel demand will recover," Spindler said.

"Import restrictions on Australian coal relaxed somewhat, before the impact of the coronavirus.

"Supply of Australian metallurgical coal remains in tight supply following recent weather and production impacts in Queensland."

Spindler said spot pricing for seaborne metallurgical coal showing signs of recovery from 2019 lows of US$130 per tonne.

"Indian steel production is expected to continue expand through 2020 underpinning additional demand of Australian metallurgical coal," he said.