Thermal coal retreated to US$90.78 per ton Tuesday (Apr 17) to represent 7.94% gain year-on-year. Some market participants responded negatively plans from Indonesian coal producers to boost output to compensate capping of coal price for domestic market obligations (DMO) and lower than expected economic growth in China.
Read MoreThermal coal has retreated from its recent peak, but shares of coal producers recovered Tuesday. Deeper corrections might be prevented by difficulties in China to resume production, shown by 12% fall in output last month, and higher demand ahead of winter season. China’s domestic coal production fell 10.7% to 2.74 billion tonnes in the first 10 months of 2016 despite improvements at China Shenhua in recent months.
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