Australia to Fare Better than Global Counterparts in Oversupplied Coal Market

Mining Weekly reported that Wood Mackenzie believes that Australian and Indonesian coal suppliers are likely to have a better 2015 than their global counterparts.

As quoted in the market news:

Further modest productivity gains, the rapid fall in oil prices and currency devaluation in Australia and Russia were expected to help lower costs, meaning that Australian mines were in a relatively strong position compared with higher cost suppliers, particularly those in the US, which were at much greater risk of closures this year.

Wood Mackenzie analyst Rory Simington stated:

Australia is a standout competitor in both the metallurgical and thermal coal trade, but particularly the former. Comparing 2014 from 2013, while global metallurgical coal import demand reduced by about eight-million tonnes, Australian exports rose by around 14-million tonnes, growing  seaborne market share from 58% to 64%.

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