Coal exports saved Australia in 2021 by increasing the state government's coffers despite a series of trade sanctions from China.
A record hike in coal prices is expected to double Queensland's coal royalties, but that chance is expected to end next year.
Thermal coal prices for the commodity used to generate electricity hit record highs in October.
This occurred after Chinese authorities refused to allow Australian coal to be discharged from ports, which only led to widespread power outages.
Spot prices for both thermal and metallurgical or coking coal have soared to record highs this year, as China continues to punish Australia for banning telecommunications giant Huawei from building its 5G mobile network.
"Despite the slowdown in the Chinese steel industry, metallurgical coal prices rose in the second half of the year after supply cuts in Chinese mines," the Federal Treasury Department said. said.
Coal was far from the only commodity to have had a good year, with liquefied natural gas and the steelmaking mineral iron ore, Australia's largest exports, hitting record highs before withdrawing.
'However, coal prices are expected to return to more sustainable levels in the coming quarters, given that the upward pressure on prices is largely due to supply-side constraints.'
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