NUSA DUA, Indonesia, May 15 (Reuters) - The global coal market is forecast to hit an oversupply of 16 million tonnes this year as production increase, Noble Resources chief coal analyst said on Monday.
“Those (producers) who are going to expand into the second half of this year are going to have to face price pressure,” Rodrigo Echeverri, the head of coal analysis at Noble Resources, told the Coaltrans Asia conference in Bali.
“The producers are now making money, so it’s in the hands of the producers what they do with that money. To go and invest in their own production and expand it - that’s actually not a very good idea for the market. That almost guarantees that we’d see the market go back to 2015 where we were all struggling.” (Reporting by Fergus Jensen; Writing by Ed Davies; Editing by Richard Pullin)