The state of Queensland in Australia has been suffered by devastating floods and cyclone disaster in a row recently, driving up the price of coking coal sharply due to expected strong demand in Asia after the Chinese Lunar New Year holiday.

The contract prices of coking coal were at around US$207/ton in the end of 2010; while, it has raised to US$225/ton in the first quarter of 2011. Moreover, the spot prices of coking coal have soared to US$375/ton, boosted by serious floods in Queensland.

It is estimated that the coking coal prices would increase to US$400/ton owing to the influence of cyclones in Australia; some even said the prices would reach US$500/ton.

Facing the rising production costs, global steel mills are predicted to increase the steel prices in the second quarter of 2011.