A Glut of Coal in China Is Set to Push Falling Prices Even Lower
- Thermal coal benchmark is already at lowest in 18 months
- Prices could fall around 8% before late January, CCTD says
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China’s booming coal production is running well ahead of demand at the onset of winter, leading to swelling inventories and plunging prices that analysts forecast will fall further.
A gauge of power-station coal prices in China has dropped around 9% since the end of September to an 18-month low of 790 yuan ($108) a ton. While demand for the fossil fuel would typically rise as the approach of winter boosted power demand, brimming stockpiles and flagging economic growth are weighing on prices.