Thursday, December 06,
Flooding in Queensland could push the coking coal price up 30 per cent over the next few months, to as much as $US330 a tonne.
This from steel trader Stemcor India director Vineet Mehra, who said the wet season floods looked worse than those of 2008, which saw coking coal contracts signed for as much as $US365 a tonne amid a broad spike in commodity prices.
“We expect to see a huge problem and a hue and cry up to March, which will create a lot of pressure on the spot market,” Mr Mehra said.
“With the Australian dollar so strong I reckon you could see coking coal at $US315-$US350” per tonne, including cost and freight to Indian ports, he said. The range translates into $US300-$US330 a tonne in free on board Australia prices, the typical benchmark for coking coal.
Premium Peak Downs brand coking coal was last quoted at $US253 a tonne FOB Australia, according to the Commonwealth Bank.
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