David Ebner
The Globe and Mail
Rising coal prices are set to spike at least 20 per cent higher because of supply shortages due to severe flooding in Australia, adding cost pressures to the steel industry that could ripple widely through the economy.
Some industry watchers believe the effects of the supply squeeze will be felt through this year and into 2012, though analysts and officials in the coal and steel-making business say the toll cannot be precisely quantified yet, with mines in Australia still under water.
Australia supplies about half of the metallurgical coal used in steel making. The severe supply disruption has been a boon for Canadian producers.
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