Coal prices set to climb higher due to Australian Floods and Africa heavy rains

Coal Flooding Breaking News:
Australia is the world’s biggest coal exporter when supplies of coking coal to make steel and thermal coal to generate power are combined.The country shipped 259 million tons of material in 2009, according to data compiled on the World Coal Association’s website. It was followed by 230 million tons of exports from Indonesia. The group cited information from BP Plc, the International Energy Agency, the World Steel Association, Simpson Spence & Young and the World Energy Council. some of the bigger coal export markets are Japan, India, Chile, China, Australia, and Belgium.
Australian metallurgical coal exports value and volume
Ref:http://www.abare.gov.au/interactive/09ac_sept/htm/steel.htm

South Africa Heavy rains impact exports

South Africa raised the flood-warning level for its central Orange River area today as water levels in places were expected to reach the highest since 1996. The country’s biggest dam, Gariepdam, is at 113 percent of “full” levels and the second- biggest, Vanderkloof, is 107 percent full, according to figures on the website of the government’s water department.
In 2009-10, export earnings from metallurgical coal are forecast to decline by 50 per cent to $18 billion, having increased by 128 per cent in 2008-09. The record prices that underpinned high export earnings in 2008-09 declined by between 57 and 62 per cent for JFY 2009. This price decline is forecast to more than offset a 4 per cent increase in export volumes.

Australia Flooding  makes coal prices to surge

One of Queensland’s largest coal terminals has stopped exports and the largest in the state is at just 60 per cent capacity, ripping nearly two million tonnes of coal a week from the global supply. About 40 mines in Queensland have been affected by flooding and several have said they cannot meet their contracts.
As the australian floods  and devastation news in the eastern states flows into the world news all over , africa is adding to the woes of the coal importing nations. To add to the coal export worries in australia, now africa  us having heavy rains impairing thier  coal exports as well.
This chain of event can mean only one thing  higher coal prices  due to this shortage in coal in australia and africa  which are one of teh bigger coal exporting countries. China and INDIA  which  have substantial coal imports from these countries will certainly be affected , even though china has its own coal producing mines. Three big coal miners BHP Billiton Ltd., Xstrata Plc and Anglo American Plc, already facing delays in coal shipments from flooding in Australia, said their South African operations are also being hit by unusually high rainfall.

Coal for delivery to Amsterdam, Rotterdam or Antwerp with settlement next year rose $2.85, or 2.4 percent, to $119.75 a metric ton at 12:28 p.m. in London. Prices rose as high as $120 earlier yesterday.

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