Recent highs in coal prices are set to stick around for at least the next few months, with one mining executive crediting supply cuts for the surging commodity price.
Whitehaven Coal chief executive Paul Flynn reportedly told a Melbourne conference this week that supply cuts in China had driven – and would continue to drive – the coal price north.
Market prices rose to around US$290 per tonne for premium hard coking coal this week.
Flynn, quoted by AFR, said the high spot prices would mean good deals for producers.
“Who is going to want to [set contract prices] at a level that materially undermines what you could otherwise get by selling into the prompt market,” he was quoted as saying.
“You will see an updraft carry that as you did with the last settlement.”
Miners recently established a US$200 per tonne deal for coking coal in the December quarter.