Metallurgical Coal: 2016’s Best-Performing Commodity

While many commodities emerged from the doldrums in 2016, metallurgical coal – also known as coking coal, met coal or simply “met” – has been a standout, nearly quadrupling in price this year. Met coal is an essential input in the traditional basic oxygen furnace (BOF) steelmaking process, so its re-pricing is affecting steelmaking economics across the globe. This article explores the supply-side rebalancing of the met coal market and its likely effect on steel production economics.

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