Coal price set to tumble: Gladstone Ports boss
THE price of coal has increased to about US$200 a tonne from the US$81 lows of the March quarter but the spike isn't set to continue according to the man who watches millions of tonnes leave Queensland's biggest port.
With 72 million tonnes of coal traded through Gladstone Port last financial year chairman of Gladstone Ports Corporation chairman Leo Zussino keeps a close eye on the commodity.
He said the spike was a result of China reducing the number of production days at Chinese coal mines from 330 days a year to 270, in May.
This was shown with Japanese steel makers reaching agreements with Australian miners that would have the price of coal sit at US$200 a tonne for the next three months.
But Mr Zussino said those conditions wouldn't last as China removed it imposed restrictions at the start of October for 800 mines.
"The expectation is that coking coal prices were going to move in the second half of this year back to a price that could produce profitability," he said. "The best forecast is the price back to US$115 a tonne."