MARKET-- Prices Up, but Market Remains Bearish

摘要

Negotiations restarted between Glencore and Tohoku for the October 2019–September 2020 Newcastle premium thermal coal contract price. Japanese power utilities are expected to settle the price beyond US$67/t while Glencore intend to reach the agreement at a mid-US$70/t. Therefore, AME does not expect that the contract price will be settled in nearly with almost US$10/t spread. As combined end users restock for the winter season and India recovers from its large-scale flooding, demand has been climbing out from the lows of the previous months, resulting in the premium Newcastle 6300 thermal coal price reached the peak of US$67.5/t in October, the highest price in recent three months. The average price remained flat at US$65.5/t in October, up 4.8% month on month. The average spot price of Newcastle high-ash thermal coal was US$50.5/t in September, an increase of 3% month on month.