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Coal Surplus to Rise by 20 Percent in 2014: Credit Suisse
Dec. 05, 2013 02:06PM PST
Industrial MetalsBloomberg reported that as coal exports from Australia to Colombia increase, a rally that has lifted prices for the fuel will come to an end. As a result, the coal surplus will increase by 20 percent, to 6 million metric tons, in 2014, according to Credit Suisse Group AG (NYSE:CS).
Bloomberg reported that as coal exports from Australia to Colombia increase, a rally that has lifted prices for the fuel will come to an end. As a result, the coal surplus will increase by 20 percent, to 6 million metric tons, in 2014, according to Credit Suisse Group AG (NYSE:CS).
As quoted in the market news:
Prices at Newcastle in Australia, an Asian benchmark, rose 12 percent to $85.67 a ton from the low on Sept. 6, data from globalCOAL show. Coal will average $84 in 2014, according to the median of nine analyst estimates compiled by Bloomberg.
Glencore Xstrata Plc, BHP Billiton Ltd. and Whitehaven Coal Ltd. are among producers scheduled to mine more next year, adding tonnage equivalent to 3 percent of global trade, data compiled by Bloomberg show. The extra supply will coincide with the slowest demand growth in three years from China, the biggest buyer, according to Morgan Stanley. The nation already accelerated imports in the past several months to stockpile for the winter.