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Analysts revise down 2019 Newcastle's coal price outlook by 1.5%

Coal News - Published on Fri, 12 Apr 2019

Image Source: Common Dreams
According to economic analysis firm FocusEconomics, Pacific basin benchmark Newcastle coal prices will likely average USD 93.80 per tonne this year, down 1.5% from previous estimates, amid “evaporating demand”. Prices in 2020 would average a marginal USD 0.10 less than forecast last month, at USD 87.20 per tonne, which are based on an average of projections by 10 economic forecasters. The Global Coal Newcastle index was assessed last at USD 83.50/t, down 17% from the start of the year.

It said in a note “Prices were chiefly pushed down due to evaporating demand among key export markets,” adding less appetite for new coal-powered projects, particularly in Japan, had contributed to the drop in demand.

It added that “Downbeat demand is in part due to tougher environmental regulations, with Japan’s environment minister [Yoshiaki Harada] promising on 28 March that he will not approve any new coal-fired power plants.”

It further added that this coincides with major Japanese firms announcing moves away from thermal coal, as well as South Korea’s government raising taxes on thermal coal by 27% earlier this year.

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Posted By : Rabi Wangkhem on Fri, 12 Apr 2019
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