It now appears that the market speculation of the Coking Coal prices crossing the USD 200/MT mark will soon be a reality. A series of supply disruptions have recently emerged that clearly indicate that the prices will move further up; in the environment dominated by strong demand and supply constraints.
According to the inputs received, there is likelihood of four mines in the Queensland region to be shut down temporarily for surpassing the permissible dust levels. The four mines are: Glencore’s Oaky No 1 and Oaky North; and Anglo American’s Moranbah North and Grosvenor.
Meanwhile, the Appin mine, owned by South32, at the Illawarra region of Australia is still under temporary closure due to high levels of gas concentrations inside the mine. The mine is not expected to resume operations within this month.
In China, prices of domestic Coking Coal also have gone up due to strong demand.
Moreover, the disruption in railways in Russia and issues at a BHP Mitsubishi mine will contribute decisively towards the price rise.
Leave a Reply