Fitch: Asia-Pacific Thermal Coal Market to Remain Oversupplied in Next 12 Months

(11 September 2013) -- Fitch Ratings says the Asia-Pacific thermal coal market will remain oversupplied in the next 12 months because strong production has been slow to adjust to weaker demand.

International coal prices will also face downward pressure as major Chinese coal producers cut prices to compete for market share and stifle domestic demand for overseas shipments, Fitch says in its H213 APAC Thermal Coal Dashboard published today.

Production cuts, however, are likely to take place because a substantial amount of both Indonesian and Australian coal output is being sold below cost, Fitch says. (ends)