Production cuts won’t help near-term coal prices: Deutsche Bank

摘要

Singapore — Thermal coal production cuts in the Pacific Basin will not be sufficient to support prices at the present level in the short term under current market conditions, Deutsche Bank said in a research note Friday. “At the moment, we are concerned that contractual commitments and pre-committed expenses by producers will be a major factor limiting a more rapid rationalization of production volumes in Australia, while costs have yet to become a constraining factor in Indonesia,” Deutsche analysts said.