Oz flood pushes coal price up; worries steelmakers

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Melbourne, Jan 4: The Australia's flood not only complicated the normal life of the people in Queensland state, also complicated steel-makers business. The monsoon rain caused rivers to spill out of banks and reached the record water levels. The watershed made Australia's life on a stand still. The mines were forced to close.

Stories about Australia floods

Flood has strike Australia's coal producing region. Hence, the price of cooking coal is expected to price hike in future about 30 percent. The cooking coal price could reach $300 a tonne, according to coal analysts and traders.

Cooking coal is an essential ingredient for steel-making. According to sources the flood have hit 40percent of the global coal supply.

Vineet Mehra, director of Stemcor India said, “the floods looked worse than those of 2008, which saw coking coal contracts signed for as much as $365 a ton amidst a generalized spike in commodity prices."

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