09/06/14 – European coal approaches 4 year low as oversupply persists
Bloomberg reported that European coal prices approached their lowest in more than 4 years amid a persistent global surplus that Societe Generale SA said shows no sign of easing until at least next year.
Year ahead coal fell for a ninth day in the longest losing streak since Bloomberg began collecting broker data in 2007. The contract dropped 0.8% to USD 79.65 a metric tonne at 12:40 pm in London.
Broker data said that it fell to USD 79.60 in February, the lowest since September 2009.
According to Paris-based Societe Generale, global coal prices have declined for three years as increasing production worldwide has outstripped declining Asian demand. The European contract has fallen 41% since peaking at USD 135 a ton in April 2011.
Mr Paolo Coghe, an analyst at Societe Generale, said that “Significant changes in prices will only come via material changes in the supply and demand balance. For the next year we see neither side changing in a way that would alter the fundamental relationship materially.”