Coal Prices
Coal prices are again rising following a sharp reduction during late 2008/2009.
China is again driving demand and is expected to import more than 20 million tonnes of hard coking coal (premium and standard grades) in the 2010 calendar year. India, which is also heavily reliant on high grade coking coal imports to feed its steel manufacturing industry, is increasingly becoming a major player in the market. India is also projected to import more than 20 million tonnes of hard coking coal in the 2010 calendar year, including more than six million tonnes of premium hard coking coal.
Hard coking coal prices for the April-June 2010 quarter at US$200 per tonne were agreed between international coal producers and Japanese steel mills.
At the time of Pike River's initial public offer (IPO) in the middle of 2007, a price of approximately US$89 per tonne was forecast for coal the company would be mining in the year ended 31 March 2011.
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| Coal prices - actual and forecasts |