Coal Eases from 3-Month High
Thermal coal futures exported out of Australia fell to $145 per tonne from the three-month high of $149 on September 7th as higher output from China momentarily offset the recent jump in demand. Bodies operated by the Chinese central government issued a joint notice for local miners to maintain ample output after local prices climbed to multi-year highs. Domestic thermal coal production had fallen since May after an accident at the Shanxi province prompted a series of safety inspections in the sector. This coincided with strong demand among major consumers of Australian coal grades, including Japan and South Korea, as soaring prices for LNG drove utilities to increase capacity at coal power plants. LNG supply has remained at recent peaks as the war in the Middle East halted the flow of tankers from GCC countries. Consistently, the EIA revised forecasts to reflect a 1.2% increase in coal demand this year.
Thermal coal futures exported out of Australia fell to $145 per tonne from the three-month high of $149 on September 7th as higher output from China momentarily offset the recent jump in demand. Bodies operated by the Chinese central government issued a joint notice for local miners to maintain ample output after local prices climbed to multi-year highs. Domestic thermal coal production had fallen since May after an accident at the Shanxi province prompted a series of safety inspections in the sector.
This coincided with strong demand among major consumers of Australian coal grades, including Japan and South Korea, as soaring prices for LNG drove utilities to increase capacity at coal power plants. LNG supply has remained at recent peaks as the war in the Middle East halted the flow of tankers from GCC countries. 2% increase in coal demand this year.