Queensland wet season may hit 'entire quarter' of coal shipments

07 Jan 2011

Source:  The Australian
Queensland’s floods could have an impact on $6 billion worth of coal shipments if the state has a drenching January-February wet season.

This could have flow-on potential for increased steel prices and reduced iron ore demand, analysts say.
While the severe flooding to date might result in only a few weeks of delays to many affected mines, continued heavy wet-season rains on flooded ground could wipe out most of Queensland's coking coal production until March or April, UBS commodities analyst Tom Price said yesterday.

"The worst-case scenario is you could potentially see lost production of an entire quarter," Mr Price told clients yesterday.
He estimated lost production of between five million tonnes, if rain stopped now, and 30 million tonnes if it continued. If flooding rain held off, mines could be back in operation in a few weeks.

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