Coal soars 15% as Australia shipments take a hit from cyclone

Sydney

COKING coal on Tuesday rallied by the most in almost four years after damage from tropical cyclone Debbie hit shipments of top exporter Australia, setting off a surge in producers' shares as Wood Mackenzie Ltd and UBS Group AG predicted the commodity's advance may have much further to run.

Spot hard coking coal, a vital ingredient in steel-making along with iron ore, soared 15 per cent to US$175.70 a tonne on Monday, according to The Steel Index. That's the biggest daily gain in data going back to May 2013. Thermal coal gained 6.2 per cent to US$88.05 a tonne.