Wet Weather Tightens Supply, Coking Coal Prices Rebound Amid Bowen’s Solid Q1

Coking coal prices are rebounding after a soggy March quarter that battered Queensland’s mining heartland. Bowen Coking Coal reported record operating cashflows of A$15.4 million, defying 22 days of weather-induced production losses. Despite a 31% drop in coking coal sales, average realised prices fell just 11% to US$147.7/t, reflecting resilient demand for second-tier HCC as mills sought cheaper feedstocks. Bowen’s Burton Complex held firm, achieving 447kt of sales and maintaining low unit costs of US$98/t—placing it in the second quartile of the cost curve. Market sentiment has improved sharply in April, with the PLV FOB benchmark surging to US$191/t following the halt of two major underground mines, which together represent ~7Mtpa. Bowen remains on track to hit the top end of its FY25 volume guidance and low end of cost targets, positioning it well for a tightening metallurgical coal market in Q2. Supply risks and policy uncertainty continue to loom.