Independent Online, citing Goldman Sachs, reported that Anglo American had won 53% increase in contract prices for pulverized coal from South Korea’s POSCO after flooding in Australia curbed output.

Goldman analysts led by Mr Malcolm Southwood, citing reports from energy pricing agency Platts and TEX, said that POSCO would pay a record USD 275 per tonne for three month contracts from April 1.

This compares with USD 180 per tonne for the three months started January 1st 2011

The previous high was USD 245 per tonne in 2008.

Goldman Sachs, citing Platts, said that POSCO contract stated that the price of USD 275 per tonne is for new business only and Anglo must supply up to half of its undelivered tonnage for the flood hit January to March quarter at the prior contract rate of USD 180 per tonne.

Goldman added that Macarthur Coal, the world’s biggest producer of PCI had offered to sell the fuel to Japanese customers at about USD 280.5 per tonne.

Queensland floods from November last year to January prompted companies, including Anglo and Macarthur Coal, to notify customers that they would miss shipments.

(Sourced from Independent Online)