The Bureau of Resources and Energy Economics (BREE), has tipped a steep decline in coal prices. However its also says Australia thermal coal export may rise by 6% in FY 13-14 due to strong demand from China and India.
BREE expects over the period of fiscal 2014 to fiscal 2018, Australian export revenues will grow at an annual average rate of seven per cent to total $293 billion in fiscal 2018.
Australia's thermal coal exports in 2013/14 are forecast to increase by 6 percent to 192 million tonnes and continue to rise at an average rate of 8 percent over the next five years, Australian government forecasts show.
Presently Australia Premium HCC coal is being offered at $152 FOB
China and India are set to become the biggest importers of thermal coal from Australia before the end of the decade, replacing Japan as the top destination and underscoring the growing energy needs of the two countries, it said.
Australia's thermal coal exports are projected to rise to 271 million tonnes in 2018 — supported by growing exports to China first and then India, according to BREE.
Input by: Reuters
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