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Mineweb reported that Australian coal prices have come down due to oversupply and weakening Chinese demand, setting the stage for lower annual price agreements with Japanese utilities.
Mineweb reported that Australian coal prices have come down due to oversupply and weakening Chinese demand, setting the stage for lower annual price agreements with Japanese utilities.
As quoted in the market news:
Asian benchmark thermal coal prices from the Newcastle terminal climbed as much as 30 percent between January and February, lifting prices off six-year lows just over $60 a tonne to a peak of $80 at the end of February, before retreating to around $68.
Some attributed the burst to moves in China to restrict so-called dirtier coal in favour of cleaner Australian coal as it tackles air pollution, a drop in U.S. exports, output cuts by Glencore and a 30 percent rise in oil.
Tony Weber, chief executive of Australia-listed miner Universal Coal, stated:
There’s no one single reason for the price rise. But at the end of the day, there is still a lot of pressure from supply on the price.