Australian producer of coal Centennial Coal Co said that global supply remains fragile and predicted contract prices will rise in the second quarter.
Mr Tony Macko GM corporate affairs of Centennial said that demand for steelmaking coal is rising as the global industry recovers a presentation filed to the Australian stock exchange today. Supplies of thermal coal, burned by power stations, remain tight.
UBS AG in a March 18 note said that Japanese steel mills in March agreed to pay BHP Billiton Ltd, Rio Tinto Group and Teck Resources Ltd about AUD 200 a tonne for a three month coking coal contract starting April 1. That’s a 55% increase on the contract for the year ending March 31.