Met coal flows into thermal coal market

AS NEWCASTLE’s spot thermal coal prices sit at their lowest level since June, Macquarie analysts have linked the fall to a drop off in demand for metallurgical coal.
Met coal flows into thermal coal market Met coal flows into thermal coal market Met coal flows into thermal coal market Met coal flows into thermal coal market Met coal flows into thermal coal market

 

Blair Price

With this week’s figures to be released on Monday, last week had the globalCOAL NEWC index diving 14.44% to $US65.32 a tonne.

This morning, Macquarie noted the continuing decline of semi-soft coking coal exports through the Port of Newcastle, with February throughput of 727,000 tonnes representing 10.6% of total shipments, compared to shares of up to 19% throughout 2008.

The investment bank also said the average export price of Vietnamese anthracite in January was $US54/t, down from a peak of $US146/t in November.

“The decline has been driven primarily by sharply lower demand in Japan, where the material is used as sintering fuel for iron ore and for pulverised coal-injection coal,” Macquarie said.

“As in Newcastle, the drop-off in metallurgical demand has seen more coal flow into the thermal market.”

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