Coronado tips booming coal prices to continue
The owners of Queensland’s Curragh mine, Coronado, have tipped booming coal prices in the current quarter as the world continues to grapple with trade constraints created by the Russian invasion of Ukraine.
Operations at the Curragh mine in central Queensland (Image supplied)
The company, which also owns coal mines in the US, said the premium low volatile hard coking coal price index was $US344 a tonne in the March quarter, an increase of 24 per cent on the December quarter because of supply cuts created by floods in central Queensland.
“Given the high prices in the March quarter, Coronado anticipates metallurgical coal price realistions in the June quarter to be higher than March due to the average three-month lag in price realisations,” it said in a market update.
However, since March prices had fallen for the premium hard coking coal used in steel production to about $US250 a tonne, well above the long term average of $US191 a tonne.
“While prices remain volatile in the short term, Coronado anticipates that prices will remain above historical averages due to the ongoing trade constraints for Russian coal and above average thermal coal prices,” it said.
Group revenue for the quarter was $US766 million and the company has almost $US500 million in cash.
