[IMG] by Matthew Stevens Coal's recession is officially over...

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by Matthew Stevens
Coal's recession is officially over with Glencore inking a near 50 per cent increase in annual reset of the price of high quality Australian thermal coal that it ships to a key Japanese power utility, Tohoku Electric.

While spot and quarterly coal prices have been riding high over recent months the unexpected strength of Glencore's settlement is rewarding affirmation that China's efforts to constrain the least viable and dirtiest of a massive fleet of domestic mines is having real and potentially lasting effects on the seaborne coal market.

Coal's sceptics and supporters alike have watched the price surge through 2016 with most everyone imaging that the recovery would be temporary and few trusting that China would hold the line on its commitment to remove upwards of 450 million tonnes of production from the world's biggest coal system.





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