The Australian government said in its fiscal 2018-2019 (July-June) budget released overnight Wednesday that it expected Newcastle basis 6,000 kcal/kg NAR thermal coal to stay above $93/mt FOB through 2019-2020.
"Thermal coal spot prices have ... persisted at elevated levels and are now assumed to remain higher at $93/mt FOB over the forecast period, consistent with a recent average and the expected Japanese fiscal year contract price," it said.
Australia's chief economist last month also raised its price forecast for the Japanese fiscal year 2018-2019 (April-March) thermal coal benchmark to $95/mt FOB, up from $77/mt it had said in its October-December report.
S&P Global Platts assessed the FOB Newcastle 6,300 GAR at $100.85/mt Wednesday, down by 45 cents/mt from the previous day, and the FOB Newcastle 20% and 23% ash 5,500 NAR at $75.65/mt and $73.75/mt, respectively, both up by 25 cents/mt. All are for a delivery window of 7 days-45 days.
