Coal Gets No Relief as Aussie Slide Deepens Glut: Energy Markets
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Coal miners are taking advantage of the tumbling Australian dollar, boosting production even as a glut of the power-station fuel drives prices to the lowest in almost four years.
While the cost of shipments from the port of Newcastle, which are priced in U.S. currency, has dropped as much as 16 percent this year to $76.10 a metric ton, the lowest since 2009, prices fell only 5 percent in Australian dollar terms, according to data compiled by Bloomberg. That’s helping buoy revenue for producers, encouraging them to increase supply, according to CIMB Group Holdings Bhd and Australia & New Zealand Banking Group Ltd.