Wednesday, 26 Jan 2011
According to Bank of America Merrill Lynch, steelmakers in Asia may be forced to pay as much as 78% more for hard coking coal after floods in Australia disrupted output in the biggest exporter of the fuel.
Merrill Lynch analysts led by Sydney based Mr Alex Tonks in a report said that Australian free on board prices may increase to AUD 400 a tonne for three month contracts starting April 1, from AUD 225 a tonne this quarter.
This compares with the bank’s January 11 forecast of AUD 330 a tonne for the second quarter.
According to IHS McCloskey, Australian hard prime coking coal used by steelmakers sold for AUD 320 a tonne on average last week, up from AUD 280 the week before. That’s the highest level for the data going back to the week ended November 5.(Sourced from Bloomberg)
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