Australian Coal Hits New Record On Higher Demand - $115 (US) Per Ton - Up $23 In One Week

[hatrack]

Coal prices at Australia's Newcastle port, a benchmark for Asian coal prices, jumped to a fresh record of more than $US115 a tonne ($127.25), as a global supply crunch worsened after a series of supply disruptions in key coal exporting nations. Thermal coal prices jumped $US23.09 from a week earlier to $US116.44 per tonne, globalCOAL's NEWC weekly index showed in the week ended February 1, based on free-on-board (FOB) prices loaded at Newcastle port.

Thermal coal prices, used for power generation, were largely buoyed by physical trades on Friday. A 15,000 tonne parcel of Australian coal for March delivery traded at a $US130 a tonne, and a 35,000 tonne Newcastle parcel also for March loading traded at $US129 a tonne FOB. "Spot coal prices will continue to rise. It doesn't look like there are many bearish factors in sight to push prices down," said Mark Pervan, a resource analyst at the Australia & New Zealand (ANZ) Banking Group.

Coal prices have rocketed on China's temporary two-month export halt, South African power shortages and force majeure declarations issued by Australian coal producers. Ensham Resources Pty Ltd and BHP Billiton Mitsubishi Alliance were among the four Australian miners that have issued force majeure on shipments after heavy rains flooded their mines.

Spot coal prices have already jumped 21 per cent so far this year, based on globalCOAL's weekly index. Indonesian coal exporter Bumi Resources Ltd said last week prices could reach $US150 a tonne FOB because of the global supply squeeze.

EDIT

http://www.businessspectator.com.au/bs.nsf/Article/Asia-coal-prices-at-record-high-BH55D?OpenDocument

[NNadir]

1. Force Majeur indeed.