Oversupply, Changing Fuel Usage Could Keep Prices Low
From Economic Times
Global coal prices are currently trading at nearly 20-30% below their year-ago levels. The benchmark Newcastle thermal coal fell to a two-year low of $87 per tonne in June 2012, which traded at close to $142 per tonne at the beginning of 2011.
Similarly, the Indonesian coal reference price too was trading around $96.65 in June ”12 from a peak of $127 in early 2011. Although prices have crashed with no bounce back in sight, a further downside appears limited.