Coal Prices to Stay Under Pressure

Global coal prices will remain under pressure until the end of the year amid a persisting glut in supply and weak demand from China and India, analysts said.

“The market is currently oversupplied. Production, in particular in Indonesia and Australia, remains strong, but the demand is declining,” Hendra Sinadia, head of the Indonesian Coal Producers Association, told a Indonesian coal-industry webinar. “This could make the coal price to continue its downtrend until the end of the year,” he said.

Already, the Global Coal Newcastle index – a benchmark for Asia-Pacific coal trade – is down more than 20% from the start of the year, at USD 50.25/t. And Indonesia’s coal reference price was pegged at USD 52.98/t in June, 20% lower than the January price…

View entirety: Dry Cargo International