Indian buyers have remained relatively quiet in the market after securing coking coal at lower prices during the second quarter, a strategy aimed at covering their needs for the monsoon season. The market uncertainty following an incident at an Anglo mine, coupled with a lull in steel demand, has also led some end-users to delay their procurement plans.
The July-September period is typically slow for steel demand in India due to the monsoon season, which dampens construction activity, and sluggish automotive sales. However, coking coal procurement is expected to increase in late August and September, in anticipation of a rise in steel demand during the October-November festive season.
Indian mills are expected to re-enter the market next month, though they are likely to resist paying high prices. This cautious approach reflects the industry's broader concerns about managing costs amid fluctuating market conditions.
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