Coal Slump Seen Ending on Deal at Four-Year Low: Energy Markets

A deal to sell Australian thermal coal at the cheapest level since 2009 is raising the prospect of production cuts in the world’s second-biggest exporter and an end to a slide in prices.

Xstrata Plc, which negotiates Australian power-station coal deliveries under annual contracts, agreed this month to sell a year’s supply at $95 a metric ton. The settlement, down 17 percent from last year’s level, is likely to prompt miners to trim some output, according to CIMB Group Holdings Bhd. and UBS AG. Australian spot prices slid to $85.85 last week, the lowest since November.