An increase of $US1.43 per tonne saw thermal prices reach $83.51/t, according to the weekly globalCOAL NEWC Index that indicates weekly price changes and calculates the Asian benchmark.
According to a Bloomberg report, analysts are confident the rise in coal spot prices can be attributed to shipping constraints that led to a drop in coal exports from the Newcastle Port of 500,000t during October.
The price hike has analysts predicting Japanese power companies may have little option but to settle for a 22% price increase for annual coal contracts, according to the Bloomberg report.
Predicted annual contract prices have been tipped at between $67 and $70 a ton.