Coking Coal prices are falling as the supply disruption that followed after the occurrence of the Debbie cyclone is now easing.
Spot prices of the Premium HCC crossed the USD 300/MT FoB Australia mark after the cyclone had damaged the rail systems in the Queensland region of Australia. The rail line damages had restricted movements of coal from the mines to ports, creating supply disruptions.
But, with the damages being repaired gradually, rail movement along most of the lines has resumed, with the exception of the Goonyella rail line, which is expected to restart on 26Apr’17. The resumption of rail movements is slowly easing the supply disruption.
In a latest development, BHP Billiton said that it might lift force majeure very soon as the supply infrastructure is returning towards normalcy. The buzz had an immediate impact on the Coking Coal prices. Spot price of the Premium HCC came down to USD 263.4/MT FoB Australia on 21Apr’17 after the buzz of lifting the force majeure started doing the rounds.
Source: CoalMint Research
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