The Australian Bureau of Resources and Energy Economics (BREE) has forecast a nine percent year-on-year rise for Australian met coal exports in 2013. The metallurgical coal exports of Australia, the world's largest exporter of metallurgical coal, are forecast to amount to 157 million mt in the current year. Between 2014 and 2018, Australia's exports of metallurgical coal are projected to increase at an average rate of 4.5 percent per year to reach 196 million mt in 2018, according to BREE. The growth will be supported by the startup of projects such as BHP Billiton Mitsubishi Alliance's Caval Ridge and Daunia projects, Anglo American's Grosvenor underground mine and the Jellinbah Group's joint venture Lake Vermont expansion.
BREE reports that contract prices for high quality metallurgical coal for delivery in the third quarter of 2013 were settled at around US$145/mt, decreasing from US$172/mt in the second quarter. Contract prices are forecast to average at US$159/mt for 2013 as a whole due to continuing weak spot prices. According to BREE, average contract prices in 2018 are forecast at around US$163/mt.