LAUNCESTON, Australia, June 20 (Reuters) - Seaborne thermal coal prices in Asia have slumped to the lowest in two years as weakening demand in Europe and falling liquefied natural gas (LNG) prices outweigh strong demand in the top-importing region.
Thermal coal imports for Asia, Europe vs Newcastle Index priceEUROPEAN INFLUENCEEurope is also having an impact on Asian seaborne thermal coal prices as demand in Europe drops, which in turn sees regional swing suppliers such as South Africa pivot back to Asia.
However, Asia is on track to import nearly 4 million metric tons from South Africa in June, up from the 2.28 million that arrived in December.
Asia's total imports of seaborne thermal coal are expected by Kpler to be 76.49 million metric tons in June, down from May's 80.01 million.
It's clear that lack of demand isn't driving down Asian coal prices, rather it's cheaper spot LNG prices and the diversion of coal from Europe that are the main factors.
Persons:
globalCOAL, It's, Kpler, Sonali Paul
Organizations:
Indonesia, LNG, Argus, Japan, Newcastle, Atlantic, Reuters, Thomson
Locations:
LAUNCESTON, Australia, Asia, Europe, China, India, Russian, Ukraine, Japan, South Korea, Taiwan, South Africa, U.S, May's