Weak power demand, a lower cost curve and a build-up of mine inventory have continued to suppress prices. Historical patterns suggest that thermal coal prices are likely to stay flat at best in 2Q, with the high inventory at both mines and powerplants adding downside risk.
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
