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Asia’s Benchmark Coal Price Approach 3 Year Low

Coal News - Published on Mon, 24 Jun 2019

Image Source: World Coal Association
Montel reported that Asia’s benchmark coal price approached a 3 year low of USD 70 per tonne this week as mild summer temperatures continued to limit demand among some of Australia’s biggest coal customers. Global Coal’s Newcastle index has shed 5% on the week to reach USD 70.71 per tonne, its lowest level since September 2016. The Pacific basin’s benchmark for high grade Australian coal deliveries to Asia stands 30% below where it began the year. Analysts at ANZ bank highlighted concerns about Asian demand coupled with “record” cargoes out of Australia’s biggest coal export hub.

Mr Zeng Hao, an analyst for sxcoal.com, said that a combination of elevated coal imports and relatively weak power generation has pressured China’s domestic coal prices to levels that have discouraged miners from shipping to coastal power plants. Port inventories in northern China have fallen from 24m tonnes to 21.5m tonnes in recent weeks, though the picture was not uniform across the country.

Mr Zeng said that inventories in the south have continued to build with stocks among coastal power plants now at 18 million tonnes around 3 million tonnes more than the same time last year. Record rainfall is expected to limit energy demand in southern China at least through until July.

Source :

Posted By : Sanju Moirangthem on Mon, 24 Jun 2019
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