WITH reports of further falls in contract thermal coal prices, the outlook for Australian coal exporters has continued to weaken, according to experts.
Xstrata Coal recently agreed to coal prices nearly 50% less than contracts it signed for the same period in 2008 as global energy prices continue to decline.
Gloucester Coal has also been pushed into contracts at prices well below 2008 prices.
The miner recently signed thermal coal contracts averaging A$113 a tonne, compared to last year’s benchmark of A$176.
Analysts claim coal mining companies are being forced to lock in prices to restrict further risk, and say the outlook for thermal coal looks “weak”.
Gloucester says a sudden drop in coking coal demanded has resulted in a “flow-on” effect for thermal markets as producers sell into thermal markets.
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