The report detailed the elevated amount of Australia’s exported coal and predicted coking coal prices would rebound slightly and then stabilise in the near term.

“In 2008 and 2009 Australia exported 134.8 million tonnes and 134.9 million tonnes of metallurgical coal respectively,” the report said.

“In 2010 Australia exported 159 million tonnes of metallurgical coal, up 24 million tonnes year on year.

“In Australia coking coal capacities ramped up since 2008 have all been digested by export growth, leaving little room for an increase in exports.”

The report said a pullback in coking coal prices in China was due to the season for steel production coming to an end, consequently lowering the steel sectors demand for coal.

Meanwhile, in 2010 Japan imported 48Mt of metallurgical coal from Australia to account for 30% of Australia’s export.

The resumption of demand in Japan will help strengthen coking coal prices.