Coking coal prices fell in the second quarter

Benchmark prices for all coal grades in Q2 2017 were significantly lower than in Q1 this year.

In the second quarter of 2017, atmospheric events had a significant impact on the coal market, which significantly reduced supplies from Australia. Negotiations between steelmakers and coal producers to set a price benchmark for the second quarter of 2017 were suspended due to cyclone Debbie, which caused the shutdown of mines and rail transport in the Queensland region of Australia.

Negotiations were suspended while the impact of the cyclone on coal supplies was being assessed. Following their resumption, Japan's largest steelmaker, Nippon Steel, set a price for Q2 2017 in mid-June based on an average of coking coal from March to May 2017. The agreed price is 32 percent lower than the benchmark in the first quarter of 2017.