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Saturday, 07 March 09
THERMAL COAL PRICES MAY DROP, STANDARD CHARTERED SAYS


Bloomberg reported that, Coal prices may decline as a slump in demand for the fuel outpaces cuts in production, Standard Chartered Plc said.

Export prices at South Africa’s Richards Bay, site of the world’s largest coal export terminal, slid last week to the lowest since July 2007, McCloskey Group Ltd. figures show. Prices for the fuel shipped from the Australian port of Newcastle, a benchmark for Asia, are at the lowest since June, according to the globalCOAL NEWC Index.

“Demand is deteriorating more quickly than supply is being cut (though mine cuts may help limit the downside),” Judy H. Zhu, a Standard Chartered analyst in Shanghai, said in a report dated yesterday. “Increasing availability of exportable coal in the short term will also create downward pressure on prices.”

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