Tuesday, January 18,
Power station coal prices rose for a seventh week to a more than two-year high and steelmaking coal gained 5.7% after heavy rain and flooding curbed output in Australia, the world’s biggest exporter of the fuel.
The price for thermal coal at the port of Newcastle in New South Wales, the benchmark for Asia, jumped $6.70, or 5.1%, to $138.50/MT in the week ended Jan. 14, the highest since September 2008, according to a U.K.-based provider of coal data.
Australian hard prime coking coal used by steelmakers was sold for $280/MT on average last week, up from $265 the week before. Prices are expected to reach $300 a ton this year.
Some flooded Queensland coal mines may take as many as six weeks to resume production, National Australia Bank analysts said yesterday in a report. The stoppages are resulting in about A$600 million of lost revenue a week at current prices.
Global prices for coking coal may reach between $400 and $500/MT because of the floods, according to consultant Wood Mackenzie Ltd.
Source: Bloomberg
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