Equity Analysis /

IN : Commodities - Overall - LNG and coking coal prices to remain strong

    Shaily Ruparelia
    Satish Kumar
    25 March 2022
    Published by

    Europe’s quest to diversify its gas sourcing led to extra demand on ROW (ex-Russia). We expect LNG slope to stay high vis-à-vis 11% historical average. Coking coal price to also remain high but may moderate from US$700/t currently. However, we believe thermal coal price will fall below US$200/t soon. LNG as well coking coal users may remain under margin stress, but producers of thermal coal are well-placed. Reiterate our Add rating on Coal India.