Coal must fall: high price will slash demand
Supply pressure set to ratchet up next year
The global coal market continues to reap the benefits of China's decision to cut coal production to reduce pollution and achieve the zero emissions target it agreed to in 2014. Despite China relaxing its restrictions on mining coal in the second half of this year, the coal price has remained high. This year, share prices of coal mining companies have gained more than 100% due to the fourfold increase in the price of coal In June last year the global coal price was $86.40 a ton and this month it peaked at $307 a ton on the Premium Hard Coking Coal Index. In 2014, China agreed in a deal with the US to cap emissions by 2030. According to a White House statement at the time, the two countries accounted for more than a third of global greenhouse gases. But XMP Consulting coal analyst Xavier Prévost said current coal prices were "just a little blip in the long trajectory of falling global prices". If the high price of coal persisted, sales would slump. "The latest forecast for the Richard...
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