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According to Bloomberg, BB&T analysts Mark Levin and Garrett Nelson made the statement in an analysts’ note this week ahead of the Chinese New Year in February.
First quarter benchmarks dropped to $US165 per metric ton, the lowest since supply settlements went from quarterly to annually in 2010’s first quarter.
“After the Chinese holiday, it’s anybody’s guess what the world’s largest consumer does,” the two said in the report.
“With plenty of supply available from Australia, the US, Mongolia and now Mozambique to meet anemic demand we don’t foresee a big near-term rebound.”
Data collected and analyzed by Bloomberg reflected a 50% cut in met coal prices from a record $330 per tonne over the second quarter of 2011.
Production was curtailed at that time following flooding in Queensland, Australia.
