Swiss-based producer-trader Glencore has reiterated its bullish view for seaborne thermal coal, noting growing Asian demand more than offsets the fuel’s declining fortunes in Europe. The faith in coal growth comes even as the miner posted a 20% decline in its first half coal profits as prices slide amid a supply glut and Chinese port restrictions. In its latest half-year financial report, Glencore said thermal coal demand in the first half of 2019 is estimated to have grown 23 mt, which more than offset a 5 mt decline in the Atlantic market. “For H1 2019, the highest growth market was India, with imported thermal coal volumes increasing 17% or 14 mt (year on year) …(and) thermal supply to Vietnam was up 113% or 7.3 mt yo- y and Japan was up 7.7% or 4.5 mt y-o-y,” the miner said. And while new supply has come online from Russia, Australia and Indonesia, there were reductions seen from Colombia, South Africa and the United States.
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