08.07.202509:31:58UTC+00Coal Trims Rebound

Newcastle coal futures have dipped below the $110 per tonne mark, moderating from a rebound peak of $112.5 on July 2nd, as investors reassess the implications of an oversupplied market. The potential reimplementation of tariffs on South Korea and Japan has clouded the prospects for importers of higher-grade thermal coal, which is predominantly shipped from the Newcastle port. Concurrently, there are clear signs of abundant supply. In China, fossil-fuel power output saw a 4.7% annual decrease in the first quarter, driven by reduced power demand and robust output from renewable energy sources. In May, China’s domestic production increased by 4% compared to the previous year, which aligns with its earlier announcement of plans to boost production by 1.5% to 4.82 billion tons this year, following a record output expected in 2024. On the other hand, the downturn is somewhat mitigated by a rise in seaborne imports of thermal coal by major consumers India and China, which reached a five-month high in May.