Thermal Coal Prices Rise in Asia on Vigorous Chinese Imports

Thermal coal prices in Asia have risen significantly in the recent times as imports in China increased due to coal production cuts being implemented by the Chinese government.

As in the recent case, prices of Thermal coal rose to the highest level in the last 10 months, mainly due to stronger imports in China.

In Jan’16, price of the high grade Australian Thermal coal—the benchmark for Asia—was at around $49/tonne. The price, of late, has gained around $20/tonne to $59/tonne.

The Chinese government is in the process of cutting domestic production to rationalize supply. The government has recently ordered Chinese coal mines to cut production by 16%, and also, to operate for 276 days in a year instead of 330 days.

Coal imports in China are expected to reach 145 MnT this year.