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Thermal coal prices to push higher - Mr Stephan CEO New Hope

Coal News - Published on Wed, 19 Sep 2018

Image Source: The Australian
Reuters quoted Australian miner New Hope Corp as saying that thermal coal prices would push higher in coming months, extending a rise that helped boost its profits in the last financial year. Its full-year pretax profit climbed 6 percent to AUD 149.5 million from USD 140.6 the year before, as markets for thermal coal priced in Australian dollars soared on the back of pollution-linked output curbs in major supplier China. Mr Shane Stephan, New Hope Chief Executive, said that “We are seeing continued (demand) strength for that premium product, and it is attracting a good price because there is no significant increase in supply being driven by the price signal. Australian mines are at their capacity and it's very difficult to get approvals for any new coal mines, and as a result people can't react quickly.”

He said that “We would (usually) be expecting to see lower coal prices than we are currently seeing in markets because right now is shoulder season, so it's the end of the northern hemisphere summer. (Consumers) don't really start restocking for winter until the end of October to the start of November, and we are still seeing quite high prices . These are good signals for the immediate future.”

Australian spot thermal coal cargo prices in recent months hit their highest in six years, and at USD 120 per tonne remain a third above lows in seen in April. They were boosted by a heatwave across the northern hemisphere, as well as by the output cuts in China, the world's biggest consumer of coal.

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Posted By : Rabi Wangkhem on Wed, 19 Sep 2018
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