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Fitch: Asian Thermal Coal Prices to Remain Weak on Oversupply
October 1, 2014 / 3:02 AM / 3 years ago

Fitch: Asian Thermal Coal Prices to Remain Weak on Oversupply

(The following statement was released by the rating agency) Link to Fitch Ratings' Report: APAC Thermal Coal Dashboard 2H14 here SINGAPORE, September 30 (Fitch) The thermal coal market in Asia will remain oversupplied in the next 12 months, in spite of on-going rationalisation of production, according to Fitch Ratings' latest dashboard on the sector. The outlook for import demand in China - the world's largest importer - is weak, due to slowing industrial production, higher hydro-based generation, as well as on-going implementation of policies aimed at curtailing coal consumption. A further reduction in China's coal production would be a key factor if domestic thermal coal prices are to improve. We believe further downside risks are limited while international prices will remain weak, as a significant share of production is making a loss. More details can be found in the agency's "APAC Thermal Coal Dashboard 2H14" available at , or by clicking on the link above. The publication explores other key themes affecting issuer credit profiles for the sector in the APAC region including, Chinese and Indonesian government measures to address production, liquidity of issuers and cost control measures. Contact: Shahim Zubair Associate Director +65 67967227 Ftich Ratings Singapore Pte Ltd 6 Temasek Boulevard #35-05 Suntec Tower Four Singapore 038986 Buddhika Piyasena Senior Director +65 67967223 Media Relations: Leslie Tan, Singapore, Tel: +65 67 96 7234, Email: Additional information is available at ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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