Coking coal price-spike 'temporary'
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THE massive tripling in coking coal prices secured by Australian miners for 2008/09 is being called a temporary "spike" caused by the Queensland floods, and analysts are expecting prices to fall back significantly next year.
However, 2009/10 prices are still likely to be around double last year's price, setting up the industry for several more years of windfall revenues.
The world's largest engineering steel producer, Arcelor Mittal, has reportedly agreed to a $US305 a tonne contract price with major producer BHP Billiton, up from $US98 a tonne last year.
On top of that, South Korea's Posco has confirmed it has agreed on a price of around $US300 a tonne, putting pressure on Japanese steel mills to follow suit.
The price-spike has eclipsed the previous record high of $US125 a tonne, which was set in 2005/06.
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Wednesday 9 April, 2008 07:27 PM |
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