[miningmx.com] – THE global thermal coal market would be over-supplied by about 10 million tonnes (mt) this year, said Reuters citing analysts and traders.
They estimate the over-supply of the market would be in the range of 7mt to 12mt which would keep prices below profitable levels for most coal producers into 2015. The volume of trade in hard coal would reach almost 1 billion tonnes this year, said Reuters.
“We have to expect at some point the low (coal) price will take out capacity,” Ian Foy, head of energy management at UK power utility, Drax, told Reuters.
“We are getting close to where Colombian prices are, which is the cheapest option at the moment,” he said.
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