Australia floods and weather forecast herald trouble for coal markets

Australian weather spells trouble for coal markets

The floods that have swept through Australia since December have severely affected its coal production industry, hindering both mining and transport. With Australia responsible for close to 30% of global coal exports, the knock-on effect on global coal prices has been substantial, particularly for metallurgical coal.

Spot prices climbed to $383 a tonne free on board Australia by the end of January this year, and are expected to pass $400 soon. They hovered between $200 and $250 a tonne for much