Coking coal prices rise as cyclone threatens Queensland
Tropical Cyclone Owen could bring heavy rainfall this weekend to Queensland's coking coal producing region, sending spot prices higher as buyers and trading firms take new positions.
The cyclone, the first of the season to form near Australia, weakened below cyclone intensity last week when it first threatened the east coast moving inland over the Cape York peninsula. It regained strength in the Gulf of Carpentaria and turned around. The category 3 storm is expected to make landfall late tomorrow or early on 15 December, possibly as a category 4 storm, before it moves inland southeast across Cape York peninsula, the Australian Bureau of Meteorology (BoM) said.
The cyclone is not near east coast ports but there are associated lows bringing rain along the coast that so far has not affected mining and port areas.
Port officials at Gladstone, Hay Point, Dalrymple Bay and Abbot Point have advised vessels to be prepared for severe weather in the next few days.
Top-tier Australian coking coal prices have risen to eight-month highs on the back of port delays and wet season supply risks. Premium hard low-volatile coking coal prices rose today by $3.65/t to $226/t fob Australia on the back of new trades. A 50,000t cargo of January-loading 72 CSR premium low-volatile coking coal traded at $230/t fob Australia, while a 20,000t cargo of premium mid-volatile was sold at $225/t on the same basis.
The vessel queue off the Queensland port of Dalrymple Bay Coal Terminal (DBCT) rose to a new record of 56 this week, with 13 more waiting to enter the adjacent port of Hay Point. Cyclone Owen lengthened the queue last week with a one-day closure of DBCT.
Queensland's wet season runs from November to April, but the BoM forecasts fewer than average number of cyclones this storm season with drier conditions expected early next year.
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