Fitch: Asian thermal coal prices to remain weak on oversupply

(30 September 2014) -- The thermal coal market in Asia will remain oversupplied in the next 12 months, in spite of on-going rationalisation of production, according to Fitch Ratings' latest dashboard on the sector.

The outlook for import demand in China - the world's largest importer - is weak, due to slowing industrial production, higher hydro-based generation, as well as on-going implementation of policies aimed at curtailing coal consumption.

A further reduction in China's coal production would be a key factor if domestic thermal coal prices are to improve. We believe further downside risks are limited while international prices will remain weak, as a significant share of production is making a loss.

More details can be found in the agency's "APAC Thermal Coal Dashboard 2H14" available at www.fitchratings.com , or by clicking on the link above.

The publication explores other key themes affecting issuer credit profiles for the sector in the APAC region including, Chinese and Indonesian government measures to address production, liquidity of issuers and cost control measures. (ends)