Newcastle coal price increase ignites new wave of optimism
The Port of Newcastle in NSW is the gateway to the coal-rich land that lies to the west. Having a history of turbulence, dodging coal price declines over the years, finally some positive news we can all be thankful for.
Asian benchmarked prices of export thermal coal from the port have rocketed 30 percent this year. It’s got the analysts talking up a storm and asking themselves: has coal bottomed out after more than 5 years on the downward slope?
Coal prices at the Port of Newcastle have leaped from around $60 a tonne to over than $80 a tonne at the beginning of 2015, their biggest jump over a two-month period since 2010.
Some coal traders said coal prices are likely to be boxed in the $60-90 a tonne range throughout 2015. Adding that the market is well supported at $60, which has been solid over the last seven years.
A near-term dent in supplies is also assisting the price increase. Mining giant Glencore said it planned to cut Australian coal exports by 15 percent this year to make sure its coal mines remain in the black.
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