| China has recently ordered more output of thermal coal ahead of the winter. Given the dominance of Chinese output in the world coal market, this is a price-changing event. The markets had accepted the Chinese statement that they had too much capacity. The country embarked on a major pit closure programme, with lower targets for future output. Coal prices rose as a result.
The Chinese were talking of eliminating an annual 60 million tonnes of capacity to deal with oversupply, as part of a longer-term 500 million tonnes reduction programme. Now this autumn they have announced what may be a temporary increase of output instead. Coal prices have fallen back...........................................Full Article: Source
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