World Economy

Australia Coal Prices Plummet

Australia Coal Prices PlummetAustralia Coal Prices Plummet

Australian thermal coal prices for delivery in June have dropped to 10-year lows as Colombian miners start sending large volumes into Asia for the first time, adding cargoes to an already oversupplied market, Reuters reported. Prices for coal cargoes delivered from Australia’s Newcastle port by May 31 last closed at $46.60 per ton, their lowest since 2006. The slump comes just as other commodities such as steel and oil enjoy rallies on the back of new investor appetite. In thermal coal markets, by contrast, an unusual new trade route has opened as low dry-bulk rates allow Colombian miners, who usually supply North America and Europe, to target Asia.