BofA Cuts Newcastle Coal Forecast as European Prices Set to Fall
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Bank of America Corp. cut its forecast for Newcastle thermal coal prices this year and said it expects the fuel to extend declines in Europe this year.
The bank reduced its estimate for coal exported from the Australian port by 12 percent to $74 a metric ton in the fourth quarter and said prices will average $82 in 2014, 9.9 percent below its previous forecast, Sabine Schels, an analyst at the bank in London, said in the report dated today. European coal for 2014 will fall to $79 a ton by the end of this year, according to the bank, 5.8 percent less than today’s price.