Newcastle prices take a breather

The rapid escalation in prices paid for spot Newcastle steam coal traded out of Newcastle, New South Wales appears to have halted late last week.

“It’s the first fall in Newcastle prices which have been on an upward trajectory for weeks,” said coal market analyst Andrew Harrington at Australian stockbroker Patersons Securities. Newcastle spot prices had been gathering momentum since early April when Japanese utilities fixed their 2008 fiscal year coal contracts at $125/mt and peaked at close to $200/mt FOB last week.
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