Newcastle Coal:The benchmark for top consuming region Asia, fell below the $400 per tonne mark from September highs of around $450 per tonne, as China pledged to raise coal production capacity this year by 300 million tonnes, Which is about equivalent to the amount of coal China usually imports each year.
While perviously Coal Trading benchmark for top consuming region Asia, consolidated around $430 per tonne and shy of its September record peak, supported by a combination of robust demand and global supply shortages. Read More…
The International Energy Agency sees global coal demand growing by roughly 1% from 2021 to about 8 billion tonnes this year, matching its all-time peak in 2013.
Adding to woes, China coal imports and production for August were 15% lower compared to the same period last year, as demand remained weak due to the continued restrictive COVID policy.
Still, the likelihood of a cold winter, constraints on the Chinese rail network, and a much depleted hydro generation system after historic droughts may boost the prices in the medium term.
