Saturday, March 6, 2010

Ennore Sees Coking Coal Prices Hitting $300 a Tonne

Indian coking coal producer Ennore Coke Ltd expects spot prices of coking coal to touch $300 per tonne by June-July from a current level of $260 per tonne.

President and chief executive officer Ganesh Natarajan said on Friday that over the past two months prices have increased from $180 to $260 a tonne as speculation rose over the pricing strategy of major Australian exporters, particularly reports of a quarterly price mechanism.

He said bottlenecks in port infrastructure in Australia would also put pressure on coke prices.

"Long waiting period at some of the major ports of Australia like Newcastle are delaying shipments," he said.

This week BHP agreed a quarterly price of $200 a tonne with Japanese steelmaker, JFE, for the April-June quarter.

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