Bank of America Merrill Lynch raised its forecast for second-quarter coking coal contract prices by 21 percent to $400 a ton after the disruption to mining caused by floods in Australia’s Queensland state.
Merrill also increased its estimate of combined lost production of coking coal, used by steelmakers, and thermal coal burned at power stations to between 18 million and 23 million metric tons. It previously estimated second-quarter coking coal prices at $330 a ton and put lost output at between 10 million and 20 million tons.
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