News, analysis and personal reflections on the markets & the financial sector

Wednesday, January 5, 2011

Australian Flood & Soaring Coal Prices

An area of Australia the size of France and Germany combined now sits under water.

200,000 people have been affected.

And 75% of Queensland's coal mines have been forced to shut down. In a matter of days coal mines have already lost at least $1 billion in coal export revenue.

Australia exports 80% of its coal, and much of it goes to China. That amounted to well over 100 million tons in 2010. And 30% of China's coal imports are coking coal used for steelmaking.

Spot coking coal prices have risen around 10 percent to around $250 a ton in a month. And coking coal prices are expected to move above $300 per ton as many Queensland coal mines could be shut down for two to three months, or longer.

No comments: