Tuesday, 18 Jan 2011
Energy Publishing Inc said that coking coal prices surged in the US as Australian flooding presents export opportunities for producers.
Tennessee based data provider said that spot prices for low volatility coking coal increased USD 26.25, or 9.4% to USD 306.25 a tonne in the week ended. High volatility coal rose USD 41.42, or 18% to USD 266.42.
Energy Publishing said that “US producers wait for Australian spot deals to develop before committing coal to the market. That’s not difficult because port and transportation issues prevent more than a smattering of US spot coal being exported in any case before the end of the first quarter or very early in the second quarter.”
According to Bank of America Merrill Lynch, Queensland supplies 50% of the world’s seaborne metallurgical coal or about 140 million tonnes a year. The flooding in that region has affected an area larger than Texas and California combined.
Metallurgical coal is used to produce steel, while thermal forms of the fuel are needed by power plants to generate electricity.
Energy Publishing said that it surveys buyers and sellers of coal to determine pricing.
Sourced from Bloomberg
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