Thermal coal seen retaining gains this year, driven by China policy

London

THERMAL coal is expected to retain much of the price gains made last year as it continues to be one of the best performing commodities, driven by Chinese policies to reduce coal output and thereby oversupply, analysts and traders said.

After half a decade of decline, the value of thermal coal prices have soared from a year ago. The Australian thermal coal price, the Asian benchmark, has grown by two-thirds since last January to US$84 a tonne, driven by a sharp cut in Chinese coal mining and strong demand.