TSX:TECK.A - Post by User
Post by
vascris15on Jun 22, 2010 9:31am
527 Views
Post# 17209780
RIO Tinto says it expects metallurgical coal price
RIO Tinto says it expects metallurgical coal pricehttps://www.theaustralian.com.au/business/mining-energy/coal-prices-to-remain-high-rio-tinto/story-e6frg9e6-1225882336773
Mr Champion said urbanisation and industrialisation in developing countries was driving up steel consumption and current sources of metallurgical coal, used in the steelmaking process, were unlikely to be able to keep pace.
"Prices are likely to remain high relative to historical levels given the lack of substitutes and rapid demand growth," he said in a presentation slide.
Rio Tinto expects hard coking coal demand to grow at an average rate of about 3 per cent a year out to 2020 with demand from Brazil, India and China expected to grow by about 8 per cent a year over the same period.
Metallurgical coal has in the past been priced in annual negotiations but that system is now breaking down, and Mr Champion said the majority of recent shipments from Australia to Asia had been based on a new quarterly prices.