Australia’s thermal coal prices are expected to remain elevated in the near term as it finds new buyers in Europe amid the Russia-Ukraine conflict, while interest from Japan and South Korea continue to soar, market sources told S&P Global Commodity Insights March 10.

The Newcastle 5,500 kcal/kg NAR coal with 23% ash hit a fresh record high $295/mt FOB March 9, the highest since the grade was first assessed in August 2017, data by S&P Global showed. Traders expect prices to rise even further given that offers for 6,000 kcal/kg NAR was indicatively valued at $427/mt FOB. Asian supply was already tight to begin with given backlogs from earlier this year when additional demand poured in following Indonesia’s coal exports ban and heavy rainfall in Australia impacting the supply chain. With Russian coal out of […]