After China-induced price spike, coal set to resume long-term decline

26 Jul 2017   Coal

Coal prices’ march to eight-month highs, driven by China’s huge appetite for power consumption, looks like an interlude in a longer-term decline and is seen losing traction later this year. Investors widely anticipate a slow demise for coal use due to policies encouraging cleaner natural gas and renewable energy generation, but the shorter-term outlook for the industry has seen a sharp reversal of fortunes. Asia’s benchmark physical coal prices GCLNWCPFBMc1 have gained more than a third from lows seen in May to nearly $98 per ton, while European benchmark API2 2018 coal futures are at eight-month highs of around $74 a ton. Recent gains are largely due to high demand in China, where power consumption has jumped […]

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