Australian Coal Prices Drop to Pre-2008 Levels

Reuters reported that Australian coal prices have fallen to levels before the 2008/2009 financial crisis, as coal demand in China suffers from slower economic growth and new environmental rules.

As quoted in the market news,

China’s slowdown, which has seen its economy expand at its slowest rate in 25 years, is throwing many coal and iron ore miners that rely largely on sales to China into crisis.

China depends on coal for almost 70 percent of its energy needs and is also the world’s biggest producer of steel, for which iron ore and coking coal are key ingredients. Yet its steel demand is falling as harsher environmental inspections and a lower gear in the economy force steel mills to cut output.

Click here for the full Reuters report