Turning to coal, Prakash Sharma Research Director for Asia coal markets, said, “Benchmark thermal coal prices in the seaborne market are trading below the marginal cost of supply for many producers, and therefore are unlikely to fall significantly lower in the future. Coal prices are sitting at multi year lows due to several factors including weakening demand and domestic protectionism in China: Delivered thermal coal prices have fallen from a peak of around US$110 per tonne in 2012 to below US$80/t in recent months already and historically, coal prices only fluctuated within a narrow band of US$2 4/mmbtu. Coal accounts for half of all power generation across Asia, while gas only accounts for 11%.
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