Coking Coal prices in Australia have dropped further—an impact of the re-opening of the Goonyella rail line yesterday.
The re-opening of the rail line will allow transportation of coal from the mines to the Hay Point and Dalrymple Bay export terminals. The rail terminal carries almost half of the Coking Coal produced in the Queensland region of Australia, in which more than 50% of the world’s Coking Coal is produced.
The Goonyella rail line is the last of the rail systems to be re-opened after the temporary closure on account of the damages caused by the Debbie cyclone. The Blackwater and Moura rail systems, which connect mines to the Gladstone port, re-opened on 10Ar’17 ad 12Apr’17 respectively. The Newlands rail system, which connects mines to the Abbot Point port, resumed operations on 13Apr’17.
After the re-opening of the Goonyella rail line, spot price of the Premium HCC moved down to USD 240/MT FoB Australia.
Source: CoalMint Research
Nevertheless, demand for Coking Coal will increase further in India due to the growing demand from the country’s steel makers. JSW Steel Limited is heard to be planning for setting up two steel plants of 10 MnT each in Odisha and Jharkhand.
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