New World Resources Plc fell in its worst two-day slump this month after European coal declined to a two-month low yesterday and Barclays Plc cut its price forecast for the fuel on increased supply.
The Czech mining company slid 1.6 percent to 89.30 koruna by the close in Prague, making it the second-worst performer in the PX equity index. The stock has lost 2.4 percent this week, the steepest back-to-back slump since Aug. 30.
Coal for next-year delivery fell 1.4 percent yesterday to $97 a metric ton in the Netherlands, the lowest since July 25, before rising 0.3 percent today. Barclays lowered its forecast for the average price of the commodity this year to $93 in a quarterly report to clients dated today, citing an economic slowdown in China and power-plant closures in Europe.
“The main story in the global coal markets has been the growth in supply, with all of the major exporters adding volumes,” Barclays analysts led by Trevor Sikorski in London wrote in the research note. In Europe, “upside to further coal use is limited by the coming closures of coal plants and policy issues around carbon pricing,” they said.