Black gold: Queensland coal producers reveal historic price hikes
Coronado has revealed the bonanza Australian coal producers have been experiencing with prices for premium coking coal reaching $US670 a tonne ($A900) in March, a 32 per cent increase for the month.
Coal prices for hard coking coal reached record levels in March
Coronado, which owns the Curragh coal mine in central Queensland, said the Russian conflict had supercharged an already tight market and pushed seaborne metallurgical coal prices “to the highest levels in history”.
The increase was about $US250 a tonne in the month.
“Met coal prices and revenues for shipments from our US and Australian coal operations reached record levels during the (March) quarter and remain elevated due to the strong global demand and disrupted Russian supply,” chief executive Gerry Spindler said.
“Coronado expects met coal prices to moderate from their current highs over the course of 2022 but to remain elevated above historical averages due to the ongoing trade constraints from Russia and China and elevated thermal coal prices providing a floor for met coal prices.”
Prices had since dropped back but remain at levels equivalent to double the historical average.
While prices remain at record levels, Coronado said its mining costs were $US76 a tonne, which was higher than previously because of inflation pressures.
Production from Curragh was 3.9 per cent higher at 3.5 million tonnes and saleable production was 2.7 million tonnes. Persistent rain impacted its production.
“In the March quarter, Curragh realised an average met coal price of $US305 a tonne, 33.7 per cent higher than the December quarter and a record for the segment.”
Curragh’s seaborne contracts are negotiated every quarter so the company expects further improvements in its realised price for the June quarter.
Bowen Coking Coal said PCI coal also reached $US655 a tonne and at the end of the March quarter prices $US515 a tonne for the premium low volatile hard coking coal and $US475 a tonne for PCI coal.
“Forecasts for the June quarter show that markets may begin to rebalance somewhat on the back of Australian supply though are expected to maintain high price levels,” Bowen said.
Markets would remain generally tight as Russian physical exports were phased out by global buyers and most increases in Australian supply were expected to be largely committed to term contracts.
