Australia''s thermal coal prices, a benchmark for Asia, rose to USD 99 a tonne on April 22, on tight regional supplies and as Asian utilities step up stocks to meet a summer season demand peak by industry and households.
Thermal coal prices on the globalCOAL Newcastle weekly index gained 59 cents from a week ago to USD 99.06 a tonne FOB Newcastle Port on April 22.
Some analysts said that prices of steam coal are likely to leap above USD 100 a tonne, bolstered by growing demand from both Europe and Asia as well as supply constraints.
Mr Mark Pervan analyst at Australia & New Zealand Bank said “Coal could punch through US$100 a tonne with signs of seasonal restocking emerging in Europe and Asia. Potential industrial action in South Africa and falling port stocks in China also flags a tighter supply backdrop.”
A possible strike at the Richards Bay port in South Africa may reduce the transport of coal exports and dramatically tighten seaborne supplies, as other main coal exporting nations Indonesia and Australia are already struggling to increase output due to infrastructure and weather constraints.
Asian prices have gained about 18% so far this year and last touched USD 100 in late January on the back of Chinese import frenzy as a cold winter halted domestic production and drove up prices.