Centennial Coal says Asian demand for higher-value coal used in steel-making has continued to strengthen, with growing shipments across the region.
In a positive sign for other coal producers, the NSW miner yesterday said buyers had returned in traditional long-term markets in the region during the September quarter.
Sales were up 22 per cent in the quarter, to 3.8 million tonnes, compared with 3.1 million tonnes in the same period last year.
Shipments of semi-soft coal from the Hunter Valley, for instance, had risen from 620,000 tonnes in April to 2 million tonnes in September.
The production result is the latest evidence of better times for producers of coal, the country's biggest export.
In a sign of the strong demand rippling through world markets, a Patersons analyst, Andrew Harrington, noted that some shipments of coking coal had traded as high as US$170 a tonne, compared with a contract price of about US$125 a tonne.
Demand for the thermal coal used in power stations has been more subdued, trading closer to its contract price of US$70 a tonne.
''The metallurgical coals are trading at a big premium,'' Mr Harrington said.
One reason for the excess demand is China, which was not historically a big coking coal buyer until this year. European steel mills are also buying more after slashing their orders in late 2008.
The latest figures from the Port Waratah Coal Service showed China accounted for 9 per cent of coal shipments in September - far above its long-term average.
Mr Harrington said the continuing strength of demand from China was surprising, as he had expected it to drop away as world coal prices recovered and its own domestic production increased.
Source: Sydney Morning Herald
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