Heavy rains hit Blackwater coking coal supply line

Heavy rains have delayed coking coal shipments on the Blackwater rail transport corridor in Queensland this morning, the second time this month that rains have disrupted services on the Blackwater line.

Heavy overnight rains have resulted in localised flooding and forced the Windah-Grantleigh section to close, impacting rail services on the Blackwater rail system, rail operator Aurizon said in a note to its coal supplier customers.

"Repairs are underway, and Aurizon expects train services to resume through the section later this afternoon," the company said.

Disruptions in coal transport logistics are common during the wet season in Queensland, but a lack of spot availability and poor production at several major mines, including UK-South African mining firm Anglo American's Moranbah North, have made buyers uneasy. This is despite overall muted demand for coking coal because of a more bearish outlook on steel prices this year.

The Argus assessment for premium hard low-volatile coking coal delivered on a fob Australia basis has jumped by 17pc to $158.70/t fob since late November, as expectations of a Chinese coal import quota reset and unpredictable weather until April have kept prices supported.

By Rou Urn Lee