Whitehaven Signals Another Weak Year for Coking Coal Prices

   By Rhiannon Hoyle 
 

SYDNEY--Australian miner Whitehaven Coal Ltd. (WHC.AU) said it doesn't expect a rebound in the price of coal used in steelmaking until next year, as the global market continues to face a supply glut.

It pointed to recent settlements by major miners including Anglo American PLC (AAL.LN) that saw lower prices for all types of metallurgical coal in the first quarter of this year. Hard coking coal settled at US$143 a metric ton, lower than a spot price of around US$160 a ton at the start of last year, it said.

"Prices are expected to remain at these levels for the remainder of 2014 and then increase into 2015," Whitehaven said in a statement. Supply of thermal coal, used in electricity generation, was also abundant, although the Sydney-based company noted prices had risen recently.

On Thursday, Whitehaven reported record output and sales as it produced more coal from its Narrabri mine in New South Wales state. The company said it produced 2.9 million tons of saleable coal in the three months through December, up 44% on-year, and sold 3.2 million tons, up 52%.

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