Coking coal prices could correct to USD 200- Reports

Market reports expect coking coal prices could correct to $200/t in 2012, but the caveat is the Australian weather that could determine the supply dynamics in the year ahead.

Mr Gerard McCloskey a consultant and former owner of UK based McCloskey Group told an audience at the Mining Indaba “There will be a correction of prices down to USD 200 per tonne.”

Mr McCloskey added “But it's a great price.”

He noted that the price for coking coal has remained around $225-250 a tonne for six consecutive quarters already.

He noted that the key caveat would be the amount of rain that falls in the Queensland basin in Australia this year. Heavy rainfall could shut down exports from the world's largest seaborne coking coal region as it has done so in the past, most notably last year.