Surprisingly yes and specifically metallurgical coal. Surprising, because the declining price of coal for past few years have claimed some prominent victims. Peabody Energy, which was the world’s largest producer of coal with close to 20 percent global market share, filed chapter 11 bankruptcy earlier this year.

As companies like Peabody gets bankrupt, and China takes up decisions to limit production, expectations of lower supply have pushed the price of the metallurgical coal by 150 percent from its bottom in February. China took a decision to limit coal mine operating days to 276 or fewer in a year. In addition to that, heavy rains and floods in the key mining province in China have limited the available infrastructure to transport coal.

According to The Steel Index, the price of the metallurgical coal surged by $14.8 per ton and reached the price of $195.7 per ton. The metallurgical coal is used in steel production. So are we finally going to see price rises for Steel too?