Tuesday, 28 November 2017

Upswing in Chinese coal mining could crush 2018 seaborne coal prices

Speedy approval of new mines in China has the potential to lower demand for seaborne coal imports by up to 50 million tons (Mt), sending down coal prices from levels above 80$/t towards to just 60$/t in 2018. EnergyAspects cautions, however, that such a dramatic fall in prices, caused by replacing higher-priced imported coal with cheap domestic production, is highly unlikely given that the government in Beijing had been content with higher prices as a driver for electric utilities to replace coal with cleaner-burning natural gas.

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