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Coal Problems Being Made Worse by Global Slowdown, Glencore Says

  • Economic slowdown compounding surplus: Glencore's coal head
  • Thermal coal price dropped to lowest in eight years in April
Coal prices have collapsed amid a broader slump in commodities that has rocked Glencore, prompting a 29 percent slump in its share price in a single day last week on concern over its debt burden.
Photographer: Michele Tantussi/Bloomberg

The slowdown across global economies is exacerbating a coal glut that’s driven prices for the fuel to the lowest level in eight years, according to Glencore Plc.

The market continues to re-balance amid weaker than forecast demand, said Peter Freyberg, Glencore’s head of coal, according to the e-mailed text of his speech delivered in Newcastle, Australia. The mining company, which in February announced it would cut Australian output by 15 million metric tons this year and delay some projects, will continue to review its operations to find ways of saving money, Freyberg said.