Reuters reported that Australia thermal coal price benchmark fell to just over USD 91 per tonne in the last week as ample supplies and continued weak demand from China and other buyers weighed on prices.

According to data provided by online trading platform globalCOAL, Australia Newcastle spot index for the week closed at USD 91.01 per tonne recently down 72 cents from the same time last week.

A Singapore based market source said "There's just too much supply for the fourth quarter."

Four parcels of 25,000 tonnes of Newcastle coal for December delivery traded this week at prices ranging between USD 91.40 per tonne on Friday and USD 93 per tonne earlier in the week.

The Chinese weekly benchmark thermal coal prices on the Bohai Bay Rim index rose slightly to CNY 630 a tonne FOB from CNY 628 last week. The supply overhang is expected to continue unless there is a significant pick up in global economic growth.

Mr Paolo Coghe an analyst with Societe Generale in Paris told clients in a note this week that "We still expect the increase in global thermal coal export capacity in 2012/13 to slightly outpace demand growth causing the market to remain in a state of slack."

The market source said although Chinese buying interest in standard grade Australian coal with a heating value of 6,000 kilogram per kilocalories remained weak, Chinese demand for lower grade coal with a heating value of 5,500 kilogram per kilocalories was heating up slightly.

Source - Reuters

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