Coal Flooding Breaking News:
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.
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.
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.
South Africa Heavy rains to impact coal 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.
Australia Flooding makes coal prices to surege
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.
Australia’s coal exports will probably take a few months to recover after the floods, Barclays Capital said in a report. That means further upward pressure on prices in the near term, Barclays analyst Yingxi Yu said in a report e-mailed today.