Newcastle coal price soars

SPOT thermal coal prices at Newcastle Port climbed to record highs last week, sparking speculation that annual contract prices will also rise.
Newcastle coal price soars Newcastle coal price soars Newcastle coal price soars Newcastle coal price soars Newcastle coal price soars

Courtesy Hunter Valley Coal Chain Logistics Team.

Staff Reporter

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.

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