Australia's thermal coal index, a benchmark for Asia jumped AUD 9 to over AUD 136 per tonne boosted as tight supply boosted prices amid the annual negotiations for the Japanese fiscal year coal contract.
Thermal coal prices on the weekly index closed at AUD 136.50 per tonne for the week to date on Monday, up sharply from AUD 126.28 a week earlier as tight supplies led desperate buyers to raise their bids.
One trader said that "It's getting very hard to get coal from some producers describing the rise in prices as the perfect storm for a higher Japanese fiscal year contract price to be set. Negotiations for the Japanese fiscal year thermal coal contract began last week and the price this year is widely expected to match or exceed the 2008 record price of AUD 125 per tonne due to upward to upward pressure from floods in Australia's Queensland State as well as production disruptions elsewhere.
Another Asia based trade source said that some coal traders said that although little coal was available, not many buyers are willing to pay such an elevated price and that actual deals were few and far between.
He added that "There are not a lot of tons around, I agree, but by the same token I'm not necessarily sure that the Japanese or anyone is really that desperate.” (Reuters)
Thermal coal prices on the weekly index closed at AUD 136.50 per tonne for the week to date on Monday, up sharply from AUD 126.28 a week earlier as tight supplies led desperate buyers to raise their bids.
One trader said that "It's getting very hard to get coal from some producers describing the rise in prices as the perfect storm for a higher Japanese fiscal year contract price to be set. Negotiations for the Japanese fiscal year thermal coal contract began last week and the price this year is widely expected to match or exceed the 2008 record price of AUD 125 per tonne due to upward to upward pressure from floods in Australia's Queensland State as well as production disruptions elsewhere.
Another Asia based trade source said that some coal traders said that although little coal was available, not many buyers are willing to pay such an elevated price and that actual deals were few and far between.
He added that "There are not a lot of tons around, I agree, but by the same token I'm not necessarily sure that the Japanese or anyone is really that desperate.” (Reuters)
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