Updated Trends: The Australia floods are now risking the coal prices to rise globally, as Queensland, the state which has been affected by the floods and the largest coal producing state, is under the grip of price surge. Flooding will affect the price to rise, and it has been predicted that prices of the product will shoot up by more than 30%, as much as USD330 per metric ton.
Almost two thirds of the coking coal needed around the world is exported from Australia and this is something that is a very important ingredient in the preparation of steel. According to the coal experts in India, they say that the flood situation in Australia this year is looking worse than 2008.
He says that during the year 2008, they had signed coal agreements at USD365 per metric ton. Coal is a material that is needed everywhere in the world and is one of the most important products needed in the industries today, so the floods that have soaked most of the coal mines in Queensland, the companies around the world are looking forward to strong price surge in the black rock’s shipping.
Source: WSJ
