The chief of leading coal exporter of the U.S., Xcoal Energy & Resources said that due to reduction domestic demand in the United States as well as reduced freight rates U.S. coal exports to China might be more than two times to exceed 12 million tons during 2012.
There is a supply glut in Asia where prices have nosedived recently due to deluge from Colombia and the United States. Since end-February, Australian Newcastle-grade coal has declined by $10 per ton. Coal reference price of Indonesia has reached to its lowest level in 16 months and South African coal has dropped by $5 per ton.
A lot of U.S. coal sellers have eyed on Asia because of shrinking local market and reduced demand in traditional European markets. China is the world’s biggest spot coal buyer to produce electricity from coal. During the first two months of the year, U.S. exported roughly 5 million tons coal to China including about 3 million tons of thermal coal.
The world’s second-largest economy is the world’s No. 1 coal producer; however infrastructure problems have lately compelled a lot of Chinese coastal power plants to turn to more accessible and cheaper imports.Previous Post » Spanish Bond Auction “Successful”, Markets Placid