The price of coking coal is expected to hit record highs as Queensland recovers from recent flooding.
Forecasts see coking coal reaching heights of US$400 per tonne this week as supplies dry up globally.
Last week saw coking coal prices jump 70 per cent from the set quarterly contract prices of US$225 per tonne up to US$383, according the latest assessment by Macquarie.
According to The Australian "there is not enough slack in the metallurgical (coking) coal supply chain to cover the losses being incurred” by flood ravaged coal mines which are yet to reach full operational capacity.
Market analysts are expecting the price to push even higher next week, above the US$400 mark.
Estimates put the levels of coking coal lost at Queensland ports due to the floods at around 3.3 million tonnes.
Between 10 and 11 million tonnes of coking coal production and exports is expected to be lost this quarter.