LONDON: Australian thermal coal prices rose to a four-month high on Monday driven by a disruption to exports from Australia.
In the physical market, thermal coal for export in June from Australia's Newcastle port was $4.00 higher at $87.00 a tonne at 1221 GMT on the globalCOAL platform.
This is its highest level since January.
European coal futures also rose. The API2 2018 contract was $0.90 higher at $67.25 a tonne, its highest level since March 2.
Traders said the rise was due to a disruption of coal exports caused by rail line damage in cyclone-hit northeast Australia.
The impact of Cyclone Debbie, which struck last week, will hit coal mines operated by BHP Billiton Ltd and Glencore PLC and raises the prospect of major producers declaring force majeure.
Coal hauler Aurizon Holdings said it would take up to five weeks to repair parts of its network of rail lines that connects mines to ports in Queensland, which accounts for more than 50 percent of global seaborne coking coal supplies.
The disruption primarily affects coking coal prices but has had a knock-on impact on the thermal market, traders said.
Annual maintenance of China Railway Corp.'s line which transports coal to the Qinhuangdao port started this month, which could also be helping to lift prices, they added.
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