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Reuters reported the anticipated decline in global coal output over the next couple of years, as cheaper altenatives, weak demand, and cost and currency headwinds cause miners to struggle.
Reuters reported the anticipated decline in global coal output over the next couple of years, as cheaper altenatives, weak demand, and cost and currency headwinds cause miners to struggle.
As quoted in the report:
Output has already begun to fall, but so far only by a couple of millions of tonnes – a tiny fraction of the global annual seaborne coal trade of 750 million. Analysts and industry executives say cuts could soon reach dozens of millions of tonnes to bring supply in line with weaker demand in China and Europe.
Bank of America Merrill Lynch analysts commented:
The current oversupply predicates production cutbacks and the delay or cancellation of expansion plans. Although we expect the surplus to shrink in 2013, it will not disappear.