Coal news and updates

Coking coal prices firm up on reduced availability: Sources

April 17: Prices of Australian coking coal have firmed up marginally over the past few days on limited availability and fears of supply disruptions in Queensland due to the recent cyclone, Ita, even as demand continues to be low, industry sources said.

“There is, at present, restricted availability of coking coal as miners are not comfortable selling the material at current prices, leading to artificial firmness in prices even as actual deals are not taking place,” sources said.

“Except for companies like BHP and Anglo American, very few miners are in a position to offer prices and, taking advantage of the situation, prices have been artificially raised even as there are hardly any takers,” they added.

Incidentally, the price of coking coal (Peaks Down), which had fallen to a low of $107 per ton in the middle of March, has advanced to $112 per ton as on April 16, according to a compilation by ICMW.

“Just because there is scarcity in the availability of coking coal, metallurgical coke prices too have firmed up to $211 per ton as on April 16 after being quoted at a low of around $204 per ton FOB Australia in the first week of April,” they added.

However, with the impact of cyclone Ita easing, prices of coking coal may soften once again in the absence of demand, they said.