Coking coal prices in Australia surged during the week ending 14 September due to BHP's coal mine closure. Premium hard coking coal was priced at $303.77/tonne, up $21.11/t from the previous week. Premium Coking Coal Futures for October settled at $317/t fob on Friday, up from $285.33/t a week earlier.
A trader from Singapore believes the BHP mine closure has pushed up coking coal prices, but it does not seem to be sustainable. BMA is currently completing safety checks at the site and will resume truck operations once safety checks are completed.
The market is tight due to weaker supply and increasing demand in India and Indonesia. Buyers are holding back and reassessing the fundamentals, with spot demand being healthy but supply looking tight.
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