Steel makers brace for surging coking coal prices after Cyclone Debbie
The market in Asia is likely tighten substantially, but for a matter of weeks rather than the months experienced after Yasi in 2011, writes Clyde Russell
Launceston, Australia — The vast steel sectors of China, Japan and South Korea are bracing for surging coking coal prices after Cyclone Debbie wreaked havoc across the main mining areas of top producer Australia, but their worst fears may not be realised. Cyclone Debbie hit the northeastern state of Queensland last week as a category 4 storm, the second-strongest rating, causing widespread flooding and damage to infrastructure in the state, which produces about half of the world’s supply of seaborne coking coal. Steel makers will no doubt be reminded of Cyclone Yasi, a storm in 2011 that knocked out mines, railways and ports in Queensland, causing the loss of about 25-million tonnes of exports and sending the coking coal price to a record of just above $330 a tonne. Debbie has hit roughly the same area and has caused similar problems, but there are some important differences this time, which suggest that while coking coal prices are likely to spike higher, the rally may not be as pr...
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