Saturday, 25 June,
World’s largest coal exporter Australia has cut export forecast for the next year while the US exports have hit new record in the first quarter of this year. The Australian Bureau estimated cut for steel-making coal output and shipments by 4.4 per cent and 5.6 per cent respectively for the year ending June 2012.
Australia’s government forecaster said higher prices would affect on demand of coal in the nation. The flooding and cyclone damage has already contributed to the biggest slump in Australia’s GDP for 20 years in the first quarter. Some analysts have estimated that the world’s biggest supplier of steel-making coal & a major thermal coal shipper would bounce back and only then if next season’s monsoonal rains arrive late.
Collieries in the northern tropics run the risk of more flooding, especially if the region suffers a second early start to the summertime “big wet” season before they have fully recovered from last season’s flood.
Metallurgical coal exports for 2011-12 estimated at 164.2 million tons, down from the previous forecast but still a rebound from the 143.5 million tones is estimated for 2010/11. ABARES (Australian Bureau of Agricultural and Resource Economics and Sciences) also cut the forecast for shipments of coal for power generation by 5.2 per cent to 152.6 million tons from 161 million tones.
The Australian coal export forecast cut is likely to affect international market because as Australia is considered as the biggest supplier of coal.
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