Coal Prices To Remain Weak On China Demand Concern: Aussie Gov Report
Coal Insights|October 2019
The Newcastle benchmark thermal coal spot price is forecast to touch $72 a ton in 2021, as demand softens relative to supply, says a study by the Australian government.
Coal Prices To Remain Weak On China Demand Concern: Aussie Gov Report

From an average of $105 a ton in 2018, thermal coal benchmark spot price (Newcastle 6,000 kcal/kg) steadily declined in July and August, hitting a 39 month low of $61 a ton in late August.

The thermal coal spot price averaged an estimated $67 a ton in the September quarter of 2019, 13 percent lower than the previous quarter and 40 percent lower year-on-year.

The price slide appears to have bottomed, due to the emergence of supply cuts from the US, Colombia and Indonesia.

“Nevertheless, the benchmark thermal coal spot price is forecast to remain weak over the rest of 2019. With a number of Chinese ports reaching their assigned annual quotas for coal imports, an expected sharp drop in China’s thermal coal imports towards the end of 2019 is expected maintain pressure on prices,” the latest Resources and Energy Quarterly report from the office of the chief economist said.

Strong short-term demand from Japan is expected to provide an offsetting effect, as nuclear reactors are closed for planned maintenance until early 2020. In the longer term, weak overall demand is expected to keep prices subdued over the outlook period.

The price is forecast to average in the low to mid $70s a tons range over the outlook period, down from an average of $105 a tons in 2018. Towards the end of the outlook period, a gentle recovery in the price is expected, as supply growth slows. There are several risks to the price outlook for thermal coal. Developments in China’s import policies and domestic coal markets are likely to drive ongoing volatility in thermal coal imports and prices. Supply from marginal producers in the US and Indonesia could also take longer than expected to contract, requiring lower prices to bring the market back to balance.

Weak demand pressure on thermal coal price

Bu hikaye Coal Insights dergisinin October 2019 sayısından alınmıştır.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

Bu hikaye Coal Insights dergisinin October 2019 sayısından alınmıştır.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

COAL INSIGHTS DERGISINDEN DAHA FAZLA HIKAYETümünü görüntüle
SCCL's coal production up 64% in Q1
Coal Insights

SCCL's coal production up 64% in Q1

Coal production by SCCL during Q1 FY22 stood at 15.57mt, 64% higher than 9.50 mt achieved in Q1 FY21.

time-read
2 dak  |
July 2021
The UK to end thermal coal use in October 2024
Coal Insights

The UK to end thermal coal use in October 2024

The deadline to phase out coal from Great Britain’s energy system has been brought forward by a year as part of the UK government’s decision to go further in driving down emissions and tackling climate change.

time-read
8 dak  |
July 2021
Coal handled by major ports up 38.5% in Q1
Coal Insights

Coal handled by major ports up 38.5% in Q1

The 12 major Indian ports handled 39.37 million tons (mt) of coal (thermal + coking) during April- June of FY22, up by 38.5 percent from 28.42 mt recorded in the corresponding quarter of FY21, according to data released by the Indian Ports Association (IPA).

time-read
1 min  |
July 2021
Cement sector sees demand revival
Coal Insights

Cement sector sees demand revival

Retail demand was under pressure during the first two months of FY22 with April and May production falling by 12 percent and 17 percent respectively month-on-month (m-o-m) as per Index of Industrial Production data.

time-read
3 dak  |
July 2021
Indian Railways' coal handling up 42% in Q1
Coal Insights

Indian Railways' coal handling up 42% in Q1

Indian Railways in April-June of FY22 transported 157.78 million tons (mt) of coal, up by 42.4 percent from 110.80 mt handled in corresponding quarter of FY21.

time-read
1 min  |
July 2021
CIL's coal production up 2.4% in Q1
Coal Insights

CIL's coal production up 2.4% in Q1

Coal India’s (CIL) coal production during April-June quarter (Q1) of FY22 was up by 2.4 percent to 124 million tons (mt) as compared to 121 mt achieved during the same quarter last fiscal (FY21), according to (provisional) data released by the company.

time-read
1 min  |
July 2021
Coal Insights

India's May coal imports up 20% y-o-y

Coal and coke imports in May 2021 were up 20.44 percent year-on-year (y-o-y), according to import data available with Coal Insights. Imports rose to 19.92 million tons (mt) from 16.54 mt during May of previous year.

time-read
1 min  |
July 2021
There is still a long way to go to squeeze coal out: BP
Coal Insights

There is still a long way to go to squeeze coal out: BP

There are worrying signs that last year’s Covid-induced dip in carbon emissions will be short lived as the world economy recovers and lockdowns are lifted, says Bernard Looney Chief Executive Officer of BP in the recently published Statistical Review of World Energy 2021 published by the company.

time-read
4 dak  |
July 2021
“Growing Infrastrcuture is a big opportunity for OTR Tires in India”
Coal Insights

“Growing Infrastrcuture is a big opportunity for OTR Tires in India”

India is now considered to be the largest market for Off-the-Road Tires (OTR) used in construction & mining industry. The opening up of the coal sector has provided further push to the potential usage of such tires. And Balkrishna Industries Ltd, a global player with diversified portfolio under the BKT brand across agriculture, industrial, construction, earthmoving, mining and port is set to seize the opportunity. Rajiv Poddar, Joint Managing Director, Balkrishna Industries Ltd., tells Arindam Bandyopadhyay of Coal Insights about the opportunities and outlook for the sector and the company.

time-read
6 dak  |
July 2021
SCCL's coal production up 69% in May
Coal Insights

SCCL's coal production up 69% in May

After putting up a dismal performance last year, Singareni Collieries Company Ltd (SCCL) has started the new fiscal on a high note. Coal production by SCCL in May 2021 surged to 5.44 million tons (mt), about 68.56 percent higher than 3.23 mt achieved in the same month last year, according to (provisional) data released by the company.

time-read
1 min  |
June 2021