Coal Age

DEC 2018

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December 2018 33 world coal markets continued The government is encouraging com- panies to open one single, large blasting furnaces rather than a bunch of small ones to reduce emissions, he said. And premium raw materials are needed in bigger furnaces. Between 2015-2025, a bunch of small furnaces will close and bigger ones will open, he added. There are a few constraints in the met coal supply market, including cold weath- er in Australia and domestic met coal be- ing bumped for thermal coal on Chinese rail networks. A potential bearish factor, he said, is that Chinese hot metal production will de- crease. However, he believes the demand and protection for met coal will increase in India. If the government meets its target, Griffiths said the demand will be huge for met coal. "We believe India will just about offset Chinese decline in raw materials," he added. In the U.S., the tariffs have created very positive margins for U.S. steel pro- ducers and price inflation for steel users, Griffiths said. If the tariffs stay, the U.S. will need to produce more steel and invest more. The trade protectionism has rekin- dled steel capacity investment, he added. The public and users have begun to express their displeasure and Griffiths be- lieves the trade measures will be diluted. Globally, there has been little impact from the Section 232 tariffs, he said. "It's just a disruption of trade flows, rather than any impact on steel output globally and met coal globally," Griffiths added. While there are some negative fac- tors affecting the coal industry, such as countries phasing out coal and the rise of other forms of energy, the overall tone of the conference was optimistic. The export market for many areas is seeing a rise and other parts of the world will continue to rely heavily on coal. Learn. Connect. Exchange. Leading the explosives industry in education, training and networking International Society of Explosives Engineers Tel: (440) 349-4400 Gaylord Opryland Resort Don't Miss These Premier Events! • Futurist David Houle • Emerging Professionals Social & Workshop • Grand Finale Gala Demand for met coal is currently high, but a decrease in the long term is projected.

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