Benchmark price tipped to grow … slightly

INDONESIA’S coal mining association believes benchmark Australian coal prices will rise to $85 a tonne at the end of this year, with little further change before the middle of 2013, according to Reuters.

Noel Dyson

Australia's thermal coal price benchmark dropped to $82 per tonne this week, as demand continued to fall with Chinese buyers relatively well-stocked ahead of winter.

Reuters says weak Chinese demand has led some producers in Indonesia, the world's top thermal coal exporter, to cut back on output and costs.

"Going forward we are happy if the coal price stays at $90, because an excessive increase in coal prices would create uncertainty and only increase the costs, and then when prices come down again the costs stay up," associations chairman Bob Kamandaru told the agency.

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