The SMH is reporting that more coal jobs are going today:
Attesting to the tough slog for the coal export industry, the Indian-controlled troubled NSW southern field producer Gujarat NRE Coking Coal, is to axe 90 jobs – a 20 per cent workforce cut.
It said natural attrition should make up the bulk of the redundancies. The cuts are necessary due to ‘‘difficult market conditions’’.
I haven’t covered coking coal for a while as it spent the last quarter recovering some ground amid a substantial Chinese restock. but that has passed now and underlying fundamentals have reasserted themselves rather unfavorably:
The latest price is $132.50, down from the rebound high of $152 and only just above its mid year low. I still expect it to fall to around $110 for much of next year as the shakeout closes oversupplied production.
