Wednesday, June 27, 2012
Coal / Sakari: Coal for power stations is headed for its worst qtr in more than three yrs as China’s slowing economy tempers demand for electricity amid brimming stockpiles and increased shipments into Asia. Thermal coal at the Australian port of Newcastle, cost $83.10 / mt as of June 22, down 20% this qtr, according to IHS McCloskey, a coal-data provider. That would be the biggest slump since the first three months of 2009. The fuel may average $103 a ton this yr, according to median estimates. It Citi note that the house dot see a significant recovery in prices occurring until probably the end of the year or into 2013. With the macro-economic outlook being relatively weak, particularly in China, it’s really hard to see the Chinese work down those inventories quick enough to see prices respond over the next three months at a minimum.