On different online trading platforms, transactions of hard coking coal have risen to more than $250 ($US190) a tonne.
Coking coal, an indispensable ingredient in the steel making process, is also known as metallurgical coal.
Matthew Boyle, an analyst with independent forecasters the CRU Group, described the price jump as unexpected and remarkable.
He said metallurgical coal prices were now more than double what they were at the start of the year.
"It's an unprecedented rally in prices, and when you look at market fundamentals, there's probably not much of a justification for it," Mr Boyle said.
"But then, when you consider that there have been [coal] production cuts in China and there have been issues with coal moving from Chinese mines to the ports and then to steel mills and there's also an increase in demand from north Asian steel mills, Indian and even European steel mills.
"So there's been an uptick in demand and with supply constraints, it's almost been like a perfect storm in regards to metallurgical [coking] coal prices."
Mr Boyle said only certain companies were able to provide good quality coking coal, which predominantly came from Australian mines.
"BHP Billiton, Glencore, Rio Tinto, some others such as Peabody and Anglo American," he said.
"Then there's the Canadian and Russian producers, but US coal miners aren't supplying into that metallurgical coal market because prices were so low for so long."
|
