Coking coal prices slump to a six year low forcing industry heavy weights to consider more mine closures. The Australian has an excellent article highlighting how expansions that were approved during the boom times have flooded the market and put prices under significant pressure. The June quarter coking coal contract price has fallen from $US143 a tonne to $US120 a tonne, which is close to typical cash costs for the east coast -coking coal industry, according to Credit Suisse analysts. The drop in the spot price of coking coal means that many Australian producers will be producing at a loss. The price movements have forced producers to again look at mine closures. Peabody chief Greg Boyce said, with the change in the metallurgical coal environment in the last quarter, we're having some pretty serious looks at a couple of operations. Full article is here: (VIEW LINK)
Quite remarkable to see met coal down at $120. Just three years ago it was 175% higher - at $330.
Here's an old chart: http://i.imgur.com/54BjBRU.png