The aftermath of the recent Debbie cyclone in Australia is seen in Coking Coal prices rising abruptly.
The notable aspect of the cyclone is that it had impacted the coal transportation infrastructure by causing damages to the rail system, but the mines were left virtually without any severe damage. Coal producers in the Queensland region of Australia, where the cyclone had hit, are unable to transport their produce from their mines to ports, causing export disruptions.
As a consequence of the damages caused to the rail network, spot prices of the Premium HCC has risen to USD 182.50/MT FoB Australia; likewise, spot prices of the 64 Mid Vol HCC also has gone up to USD 157/MT FoB Australia.
Source: CoalMint Research
On a week-on-week comparison, the prices of the Premium HCC rose by around 17%, and the 64 Mid Vol HCC prices increased by 14.5%.
For Indian buyers, the offers translate into: USD 195/MT and USD 169/MT respectively on CFR India basis.
The prices could be expected to rise further as some coal miners in Australia have declared force majeure on their supplies.
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