Search posts by:

Search posts by:

Newsletter successfully sent
Failed to send newletter

AlwaysFree: Asian Coal Prices Seen Remain Low Through End-Year

Author: SSESSMENTS

Commodity traders and analysts expected coal prices in Asia to remain low until the end of 2020 due to expected weak demand from utilities which are still working through their inventories. Asian coal prices have dropped 25% to near five-year lows at $50/ton this year as the coronavirus pandemic weakened power consumption.

Analysts said coal demand in Asia would likely be 60 million to 70 million tons lower compared to last year. At the same time, producers will require time to reduce output to balance the market. Japanese utilities are burning more LNG due to lower prices and contractual supply obligations. LNG prices have increased in recent months, but they remained well below historical highs.

Meanwhile, China imposes restrictions on coal imports, especially from Australia. According to analysts, the curbs were politically-driven due to growing tensions between the two nations.

Tags: AlwaysFree,Asia Pacific,Coal,English

Published on August 26, 2020 12:19 PM (GMT+8)
Last Updated on August 26, 2020 12:19 PM (GMT+8)