[miningmx.com] – THE price outlook for coal through to 2018 has worsened owing to falling demand for imports from India which was increasing domestic production, said Bloomberg News citing a report by Goldman Sachs.
Prices will also be pressured by a 30% drop in marginal production costs over two years through 2016, according to the note. The bank cut its price forecast for Newcastle coal, a benchmark in Asia, by 17% to $54 a metric ton for next year, said the newswire.
“Countries with large coal reserves can eventually reduce their dependency on imports,” the bank said in the report. “The ongoing reforms of the Indian mining sector should lead to stronger domestic production that may rob the seaborne market of its last source of growth,” it said.
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