Re, The hairyback macho power supply is not that reliable in the heat
Confidence returns for Australian coal miners
JANUARY 19 2018 - 9:47PM
*** What’s powering coal’s revival?
Those companies that made it through thermal coal’s recent collapse are facing a much-improved market and positive sentiment driven by energy demands
Fat Prophets analyst David Lennox says the changing face of the world’s energy needs will eventually have a major impact on thermal coal, but the growth of renewables will not negate coal in the near to medium term.
“Even though we’re seeing significant interest for renewables, we’ll still see thermal coal power stations for a long time,” Mr Lennox told Fairfax Media...
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A recent Credit Suisse analysis agrees noting that while much of the developed world is turning away from coal, there is still strong demand from South East Asian nations. "These nations expect to add 32 to 56 gigawatts of coal-fired generation from 2015 to 2025. The high end of the range may represent increased coal demand of 150 million tonnes per annum," it says.
This is the focus for Whitehaven's Flynn. He says the coal outlook has been strong and exceeded many market expectations in the lead up to north Asia's winter period.
"A number of factors are helping to maintain these higher prices - China's draw on the seaborne thermal coal market is steady, demand for high-quality coals from South East Asia and the traditional Asian markets of Japan, Korea and Taiwan remains strong, reflecting buoyant economic conditions across Asia while a number of factors including Australian industrial relations issues and poor weather in Indonesia have limited supply response," Mr Flynn says.
"The outlook for thermal coal in the short to medium term is favourable."
