Capes propped up by China market sentiment
2010 looking good for coal industry
The coal industry is preparing for continued improvement in market conditions this year amid expectations that power consumption and steel output will drive up demand.
Specialist shipping market analyst Braemer Seascope Research predicts that total coal consumption will rise 5% from last year to 6.2bn tonnes while coking coal consumption will increase 12% to 931m tonnes driven by a 16.8% rise in steel production to 1.44bn tonnes.
Rio Tinto’s subsidiary, Coal & Allied, is also upbeat about the outlook for coal with the company predicting 2010 will be a buoyant period for thermal coal and semi-soft coking coal.
Thermal coal and semi-soft coking coal lifted total coal production at Coal & Allied’s Hunter Valley operations by 11% in the December quarter, a 2% increase in production at its Bengalla mine and more than doubling output at its Mount Thorley operations.
Braemar Seascope predicted that international coking coal exports could reach 248m tonnes, of which 58% will be from Australian ports.
