The recent floods in Australia are having a major impact on coal mining. As Australia is one one the top five coal exporters in the world this is certain to have an impact on the availability of “coking coal” used in the manufacture of steel.
Whilst the most immediate effect will be felt in the South East Asian markets, the global nature of the industry today, with an inevitable rise in the price of coke and the cost of steel production.
Steel companies have already been speaking bullishly of a steady increase in demand for 2011 and coming price increases. Events in Australia are only likely to add to upward pressure on prices.