Coal price to rise 150-200%

[asylum]

New York - The price of coking coal, a key ingredient in steelmaking, is expected to rise by 150% to 200%, driving up steel prices further, the head of the world's largest steel manufacturer, ArcelorMittal, said on Wednesday.

[Preston]

Also excellent news for BHP Billiton

[Brazen]

Not such excellent news for Eskom tho. . . or for those BIL smelters for that matter.

[Preston]

why?

[#5]

Can we ban him now?

[Preston]

Only after i get my answer.

[Brazen]

Eskom generates about 90% of its power from coal, ergo the coal price goes up and the more than 50% price increase Eskom says it needs might look puny. BIL smelters use massive amounts of electricity etc etc. And never mind BIL, what about the massive across the board inflation for the rest of us. All in all, more expensive coal is bad news.

[Preston]

Thanks Brazen.

[#9]

Mittal was only justifying another steel price hike that he is proposing. News should be taken with a pinch of salt...

[DST]

ergo? were you sukkeling to spell goes, or just er, or were you feeling pretentious?

[Brazen]

Just feeding my ego, ergo, I used the word ergo.

[asylum]

nah yuo dont justify a price hike without some substance i think mittal have had enough run in with competition board.

[asylum]

nah you dont justify a price hike without some substance i think mittal have had enough run in with competition board.

[Plonky]

Well... that could be good news for the coal producers. Coal of Africa (CZA) has coking coal reserves near the Exxaro Coking coal mine (Tshikondeni) in Limpopo. If the price of coking coal goes up, then these producers will benefit from it. Coking coal is very scarce, and usually does not go to Eskom. Thermal coal goes to Eskom which is produced in the Witbank coalfields by Anglo Coal, BHP and Xstrata.

[CAPITALIST_RUNN]

Project Director can assist but I believe its also the low quality high sulphur thermal coal that Escom burns! A large portion Mittal's production at Vanderbijlpark Works uses electricity and not coking coal!