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The Financial Times reported that on Wednesday thermal coal in Australia’s Newcastle port was trading around US$78, near its lowest price since 2009, as a result of low demand and “abundant” supply.
The Financial Times reported that on Wednesday thermal coal in Australia’s Newcastle port was trading around US$78, near its lowest price since 2009, as a result of low demand and “abundant” supply.
As quoted in the market news:
Analysts believe many thermal coal mines are at, or below, breakeven profitability levels because of weaker prices and rising costs. Thermal coal, which is used to fire power stations, has fallen 17 per cent since January.
A combination of weak demand and strong supply has created a surplus that has hit thermal coal prices. Macquarie Capital estimates seaborne thermal coal exports from Australia, Russia and the US – three of the world’s highest cost producers – rose 13 per cent in the first half of the year.