Farewell, thermal coal

From ANZ today:

Newcastle physical coal prices hit a 3-month low of USD80/t, in line with other Asian coal prices. Chinese demand remains soft and an oversupply situation is apparent in Pacific markets. The NDRC said Chinese utilities have closer to 29 days of supply (contrary to other reports of 20-25 days of supply). Either way, this is negative, with the average days of supply normally around 15 and signals ongoing weak demand.

ANZ Commodity Daily 725 151012

David Llewellyn-Smith
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Comments

  1. What % of thermal coal producers would currently be producing below cost?
    Glad I’m not a coal producer

  2. The extra stock *could* be an adaptation to the floods.

    Mining thermal coal is easy once the mine is operational. You’re literally digging up 8mill year old trees. It’s soft. It requires next to no processing. It’s a miners dream.