Coking coal prices rose sharply in Australia in the week ending February 10 due to supply problems amid rainy weather and a coal train derailment in Australia.
Experts valued premium hard coking coal at $370.46/t free-on-board in Australia, up $22.38/t from $348.08/t the previous week.
On the Singapore Exchange, premium coking coal futures for March settled at $369.33/ton on Friday, up $29.33/ton from $340/ton the previous week.
There were no deals during the week. According to traders, a $370/t FOB offer for 40,000 tons of grade coking coal for March leukan was received on Friday.
“I don’t see anything available right now for either miners or traders,” says one trader. Weather events and a train derailment in Australia have affected the supply of coking coal, he said.
It was reported last week that the Blackwater rail corridor from Queensland's Bowen Basin to Port Gladstone was closed after a coal train derailment. On Friday, rail operator Aurizon told Callanish that the corridor would only open over the weekend.
“March looks very busy. The threat of cyclones, the recovery in demand in China, the Blackwater crash and rainy weather are all affecting supply,” says another trader. According to him, thanks to these factors, coking coal prices will remain stable in the near future.
Another trader says coking coal prices could remain high at $370-$380/t fob, albeit capped by coke prices currently at $450-460/t in India due to supply disruptions and concerns.
Coking coal rises in price due to supply problems
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