The emergency prices. Coal in Russia has risen in price in 1,5 times

29 August 2007
Two failures on mines " JUzhkuzbassuglja " not only have led to sale of company " Evrazu ", but also have warmed up the Russian market of coked coal. The price for its most valuable marks because of the deficiency which has arisen in a home market now com nearer to record parameters 2005 - $100 for 1 t.

The last some years for the Russian coal miners developed not excellent. In the beginning 2006 the price of the most valuable mark of coked coal () in Russia hardly reached $45,5-50 for 1 t, and in it year - $50-60 for 1 t, is spoken by analyst Deutsche U FG Olga Okunev. But now it comes nearer to record marks 2005 when cost of this production reached up to $100 for 1 t. According to Okunevoj, now the ton of a concentrate on spotovom the market costs nearby $95. The reason of such sharp rise in prices on c oal in Russia steel two spring failures on mines " JUzhkuzbassuglja " - "Ulyanovsk" and "Anniversary" as a result of which were lost 150 person. Because of that that these mines till now stand idle, in the market there was a deficiency of coked coals, mar Okunev.

Metallurgists already on themselves have felt it. " Coal miners even have entered an advance payment on deliveries, but also on such conditions not always it is possible to receive zakontraktovannyj volume ", - the interlocutor of "Sheets" in one of metallurgical groups complains. Because of shortage of raw material Industrially-metallurgical holding (its structure includes "Coke", the client "JUzhkuzbassuglja") negotiates for deliveries from Ukraine, from Mongolia and Australia, the representati of the company Paul Kovalenko tells. " Severstal " and NLMK own own coal actives. The Magnitogorsk which has concluded in April, 2007 the long-term contract on deliveries of coal with "JUzhkuzbassuglem", has suffered. The source close to MMK, speaks, that nder the contract "JUzhkuzbassugol" should close 8 % of needs MMK in a corner, but conditions of the contract are not carried out. To make good the loss it is possible due to the rests and redistribution of purchases, the interlocutor of "Sheets" marks. T ough it names a situation with deliveries critical, but is assured, that it will improve, as soon as mines " JUzhkuzbassuglja " will be started in operation. Because of that that the Russian metallurgists search for alternative suppliers, deficiency of co has arisen and in Ukraine. The analyst "Uralsiba" Cyril Chujko speaks, that the Ukranian language "Mittal Steel n" already is going to buy a part of coal in Australia.

To contact representatives "JUzhkuzbassuglja" yesterday it was not possible, the repre tative "Evraza" has refused comments. But according to one of the companies - partners "JUzhkuzbassuglja", both standing idle mines can be started in September. As a result of failure "JUzhkuzbassugol" in 2007 will reduce manufacture of coal with planned illion t up to 14,5 million t, and plans on coked marks will be lowered about 11,5 million t up to 8 million t, has counted up a source.

Representatives "Raspadskoj" and forecasts on the annual profit to give "Mechel" have refused. The situation in the m arket is now advantageous for coal miners, but they will not be in time her as it is necessary to take advantage, the analyst " Three Dialogue " Sergey Donskoj thinks. The majority of them works with metallurgists under long contracts with fixed by, and s potovyj the market in Russia small, it explains. For the same reason, in its opinion, strongly will not suffer and metkombinaty. On 2007 Don predicts the average price for coked coal in $76 for 1 t, it on 19 % is more, than in the past to year.


Source: http://www.metcoal.ru/news_eng.asp?action=item&id=9408