Reuters reported that Australia thermal coal prices, the benchmark for Asia rose slightly to around USD 111 per tonne in thin pre-holiday trading with some producers unable to fill deliveries for early next year in part due to wet weather.

Thermal coal on the global COAL Newcastle index for the week to date closed at USD 111.59 per tonne on Wednesday up slightly from USD 110.38 per tonne a week earlier.

According to market sources wet weather in Australia main coal producing region, the Hunter Valley has slowed production and kept supplies for January and February of next year tight.

The ongoing closure of the Orica explosives plant that supplies many Australian thermal coal miners has also constrained coal production.

Orica said on Thursday repair work on the plant will be completed this week and the company will begin pre-start testing next week.

Despite the production delays, however Australian thermal coal shipments from Newcastle port rose 14% in the week ended December 19 to 2.95 million tonnes as producers continued to ramp up exports ahead of the year end.

(Sourced from Reuters)