Coal prices have risen 30 per cent from their low in March. However, for the second half of 2009, there are still risks of tight coal supply. In China, many domestic producers have arbitraged the low offshore prices with higher onshore prices, which has made demand look stronger than it was. So, correction is expected in the new two months. However, strong demand for thermal coal in China and India is expected to help Asia avoid the first fall in imports for a decade this year, and push import growth even higher in 2010.
Gloucester Coal Ltd. declared that it will be removed from Australia’s benchmark share index following a successful takeover and will be replaced by SMS Management and Technology Ltd. For full story, click here
Though the world economy continues to remain frail, more and more production is coming on line and mines are being developed. And as factories begin to open rather than close, and for all the new nuclear power plants being foreshadowed, there will be an enormous demand for thermal coal. A false dawn?
Australian thermal coal prices, a benchmark for Asia has edged lower to around $63 a tonne on concerns over demand, after hitting a two-week high of $64 earlier in the week. For full story, click here
Bloomberg reported that Indonesia will fix a monthly benchmark price for domestic and overseas sales of coal. For full story, click here
Monday, September 21, 2009