Bloomberg reported that China’s fourth largest producer of the coal Yanzhou Coal Mining Co said the nation’s recovering economy will boost demand and the price of thermal coal from late September.

Mr Weimin Li chairman of Shandong based Yanzhou said in Sydney “The economy in China is strengthening, so the expectation is demand will start to pick up toward the end of the third quarter. From late September, you will see support for prices.”

He added “Internationally, the trend is very similar. We’re hitting the bottom, and we’re waiting for the market to pick up.”

Prices for thermal coal have slumped because of waning demand and increased exports from the US, where lower gas prices have prompted substitution.

Source - Bloomberg

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