logo
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Coal Production Increases On Weaker Australian Dollar

By  +Follow August 23, 2013 10:21AM
Share:
Tickers Mentioned:

The recent weakness of the Australian dollar is causing an uptick in coal production in the country that appears likely lead to a further increase in surplus, which for 2012 were already tallying at some 20 million tons.

The discovery of massive shale reserves in the US has led to a boom in oil and natural gas production, which has in turn taken a toll on domestic usage of coal as an energy supply. The story is different in rapidly developing countries, however, and Australian producers have been taking advantage of the struggling currency in order to increase output while overhead expenses are low. Indeed, coal shipments from the country are up over 13 percent on a year-over-year basis. According to the financial services firm Macquarie Group Ltd, the 17.6 million tons the country exported in June was a monthly record.

Higher exports have not come without consequences however. Australia’s Newcastle export terminals in New South Wales saw prices drop 10 percent in the same month to $77.75 per ton. Coal prices in Newcastle were down nearly 20 percent overall last year, and July’s average of $76.63 per ton was the lowest since fall of 2009.

Analysts have responded to this situation by reducing forecasts, as Goldman Sachs (GS) and Citigroup (C) both agree that coal prices in 2013 will be lower by around 7 percent. And the industry itself seems to be fully aware of the situation. Yancoal Australia Ltd., a Chinese-run operation, announced in its recently-released mid-year production results that the relatively stable demand that has persisted is being overtaken by growing surplus, as mining companies take advantage of currency conditions to produce more for less before having to contend with inevitable cost cutting measures.

The Australian Coal Association has recently noted that the strength of the Australian dollar in recent years accounts for some 30 percent on higher prices, and says that the industry is 11,000 jobs poorer as a result.

For the time being, however, demand is expected to stay strong enough to support a 7 percent projected increase to 183 million tons exported by the end of the year. Indonesia, the only country that exports more coal than Australia, could see exports up as much as 6 percent. For the time being, the difficult decision to cut output can and will continue to be postponed.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


Liked What You Read? Join Equities.com as a contributor and get eyeballs on your content FOR FREE!

Results for gs
Stock Updates
30 Aug 14 12:22:46
$GS: Exclusive: U.S. options exchanges craft rules to fend off turmoil http://t.co/l4vyYueGqk http://t.co/3pq9rV6nbl
U_ri_n_aLulu
30 Aug 14 12:19:15
RT @OOngunGuyonn: ☯Gain Followers ☯RT This ☯MUST FOLLOW ME I FOLLOW BACK ☯Follow everyone who rts ☯Gain #gameinsight #FOLLOWBACK #Love $g…
PPinelliSldneyy
30 Aug 14 12:17:42
RT @OOngunGuyonn: ☯Gain Followers ☯RT This ☯MUST FOLLOW ME I FOLLOW BACK ☯Follow everyone who rts ☯Gain #gameinsight #FOLLOWBACK #Love $g…
OOngunGuyonn
30 Aug 14 12:16:08
☯Gain Followers ☯RT This ☯MUST FOLLOW ME I FOLLOW BACK ☯Follow everyone who rts ☯Gain #gameinsight #FOLLOWBACK #Love $gs#
Carolyn B Miciano
30 Aug 14 12:06:09
The pluses and minuses of straddle trades http://t.co/hlprgEwy7t $GS $COST $FDX
PennyStock Zone
30 Aug 14 11:50:24
Best day trading DVD by Fous Alerts check it out! http://t.co/HJ6WDp65fM #stocks #trading #nasdaq #nyse $XRS $MCHP $GS $BURL $VOD $IRF
Market Updates
30 Aug 14 11:22:55
$GS: Midterm Election Mind-Reading: The Market Tends to Win http://t.co/ZoReiOTJhB http://t.co/Zlt4VjOqk2
Square Mile T.C Ltd.
30 Aug 14 11:00:07
RT @WSJ: So long, Project (Taylor) Swift. Goldman Sachs is cracking down on funny code names for projects: http://t.co/N8P5PmIPv5 $GS
Financial News
30 Aug 14 10:22:46
$GS: U.S. judge throws out aluminum price-fixing suit against banks http://t.co/8xYAEM6eiP http://t.co/DmjMDnCzzM
Daniel Sigal
30 Aug 14 10:15:44
@jimcramer I have 1k and can't decide between $GS, $MS, and $WFC. #madtweets #madmoney
George Tkaczuk
30 Aug 14 10:05:09
RT @JBoorman: RT @KevStanf: 10 Great Momentum Stocks in the Dow Jones Index right now. $GS $HD $INTC $JPM $MRK $MSFT $PG $TRV $UNH $DIS.
Stockviser Banks
30 Aug 14 09:59:49
Goldman now requires bankers to use software that generates random code-names like Project Calculator http://t.co/ZCwCxk1x5q $GS #WallSt
Jake13
30 Aug 14 09:59:44
$DDD Sell? Click here to find out if $DDD is a buy hold or sell. Watching these stocks. $QIHU $GS $ERY $CVX ht http://t.co/uPARBWfnEe
Swing Trade Alerts
30 Aug 14 09:57:29
WSJ:So long, Project (Taylor) Swift. Goldman Sachs is cracking down on funny code names for projects: http://t.co/gL64HjduQ2 $GS
Ani Anirudhan
30 Aug 14 09:53:01
RT @JBoorman: RT @KevStanf: 10 Great Momentum Stocks in the Dow Jones Index right now. $GS $HD $INTC $JPM $MRK $MSFT $PG $TRV $UNH $DIS.
Crave for News
30 Aug 14 09:45:44
So long, Project (Taylor) Swift. Goldman Sachs is cracking down on funny code names for projects: http://t.co/5iWPJlUjHg $GS
Investors Hangout
30 Aug 14 09:33:10
Emylers: $GS Up to date company activities and other http://t.co/j85xAPYhaH
Investors Hangout
30 Aug 14 09:33:10
Emylers: $GS Up to date company activities and other http://t.co/nuth3RKB7z
Market Updates
30 Aug 14 09:23:00
$GS: Option Trends: Goldman Sachs Group Inc and Morgan Stanley http://t.co/R6WqicV7mX http://t.co/0FxjGLKAIT
leahanne
30 Aug 14 09:15:52
$NFLX Netflix Inc (NFLX) 477.64 +2.43 (+0.51%) $GS $IEF $GILD http://t.co/6vnohZncA6
Emylers
30 Aug 14 09:03:31
$GS Up to date company activities and other important information about $GS http://t.co/vrbl2KuruM
D Albers
30 Aug 14 08:52:05
@Jamie_Weinstein @BloombergNews Plus $GS probably had trades the opposite way. Now that's how to make money! Too bad for customer.
Jon Boorman, CMT
30 Aug 14 08:49:59
RT @KevStanf: 10 Great Momentum Stocks in the Dow Jones Index right now. $GS $HD $INTC $JPM $MRK $MSFT $PG $TRV $UNH $DIS.
UK Trend Friend
30 Aug 14 08:36:43
10 Great Momentum Stocks in the Dow Jones Index right now. $GS $HD $INTC $JPM $MRK $MSFT $PG $TRV $UNH $DIS.
TonyThomas
30 Aug 14 08:33:20
RT @GSCareers: PHOTO: $GS #interns clear up London's waterways with @Thames21 for #CommunityTeamworks #2014 http://t.co/okXIoiXwV1
jedimarkus
30 Aug 14 08:24:58
@RyanBumpyBrown @sanglucci Where the client comes first... $GS (I am not sure you want to be first with these guys!)
Business News
30 Aug 14 08:22:52
$GS: Goldman, Skadden, Arps Still Kings of Inversion Deals http://t.co/BsN83mTx2c http://t.co/b6FY3MrU04
larmanius
30 Aug 14 08:04:32
@willrahn #HailHydra! $GS
Investors Hangout
30 Aug 14 08:01:43
DennyT: MRO Market Watch $MRO $XRE.TO $CALVF $LNKD $GS http://t.co/7Y48tb34Ya
Investors Hangout
30 Aug 14 08:01:43
DennyT: MRO Market Watch $MRO $XRE.TO $CALVF $LNKD $GS http://t.co/eIpVhsufcB
Investors Hangout
30 Aug 14 07:43:37
chartguy89: GS Stock Chart $GS $DIG $SLCA $ATD/B.TO http://t.co/3JZiS8j0Ot
Investors Hangout
30 Aug 14 07:43:37
chartguy89: GS Stock Chart $GS $DIG $SLCA $ATD/B.TO http://t.co/aR1yEhCI5B
Josephine Mason
30 Aug 14 07:40:48
RT @jonathanaleff: Remember Goldman Sachs' $GS part-owned oil-rail venture U.S. Development Group? They're filing for an #MLP http://t.co/…
Market News Desk
30 Aug 14 07:22:55
$GS: Dow Today: Goldman Sachs Group (GS) Lower http://t.co/kuCW2I8yAa http://t.co/Rkcz8kNsxV
OTPicks.com
30 Aug 14 07:20:01
http://t.co/hjgLwIcNgz danrocks: $AMAT On Alert $GS $GRCU $TD.TO $FFC $CFW.TO: danrocks http://t.co/UNvDtUGyAE http://t.co/hjgLwIcNgz
OTPicks.com
30 Aug 14 07:20:00
http://t.co/QkCFZ8H3V8 danrocks: $AMAT On Alert $GS $GRCU $TD.TO $FFC $CFW.TO: danrocks http://t.co/9PD3Tn9XRz http://t.co/QkCFZ8H3V8
Connor J. McDonnell
30 Aug 14 07:19:26
RT @WSJ: So long, Project (Taylor) Swift. Goldman Sachs is cracking down on funny code names for projects: http://t.co/N8P5PmIPv5 $GS
Jake13
30 Aug 14 07:16:01
$MCD Buy or Sell? Click here to find out if $MCD is a buy hold or sell. Watching these stocks. $GS $LAD $AEM $ http://t.co/m86IyGEm8L
Extreme Stocks
30 Aug 14 07:04:27
danrocks: $AMAT On Alert $GS $GRCU $TD.TO $FFC $CFW.TO http://t.co/y0TioSICaH
Investors Hangout
30 Aug 14 06:58:42
danrocks: $AMAT On Alert $GS $GRCU $TD.TO $FFC $CFW.TO http://t.co/Lj2FvWJjqW
Investors Hangout
30 Aug 14 06:58:42
danrocks: $AMAT On Alert $GS $GRCU $TD.TO $FFC $CFW.TO http://t.co/sIt6pltcrW
danrocks
30 Aug 14 06:54:20
$AMAT On Alert $GS $GRCU $TD.TO $FFC $CFW.TO http://t.co/gFJyps9pPC
Business News Watch
30 Aug 14 06:22:48
$GS: [video] JPM investigating possible cyberattack http://t.co/7KSNEYZ5Hn http://t.co/i7GBzONjGA
kristen gest
30 Aug 14 06:11:43
RT @WSJ: So long, Project (Taylor) Swift. Goldman Sachs is cracking down on funny code names for projects: http://t.co/N8P5PmIPv5 $GS
Elizabeta
30 Aug 14 06:00:45
RT @WSJ: So long, Project (Taylor) Swift. Goldman Sachs is cracking down on funny code names for projects: http://t.co/N8P5PmIPv5 $GS
ETFguide.com
30 Aug 14 06:00:13
Get $100 if your #PortfolioReportCard is an "A" http://t.co/wHtYBdRDAt $LNKD $NFLX $FB $TWTR $SCHW $GS $VTSMX http://t.co/mi7zLz9fIX
Social Alpha Inc
30 Aug 14 05:59:20
Stocks trending on social media now: $ONE $GAIN $RT $GS $IGN $TWTR $GBPUSD $AAPL. Trade social buzz @ http://t.co/K98K1bULdq #tradeSentiment
PennyStock Zone
30 Aug 14 05:58:33
Best day trading DVD by Fous Alerts check it out! http://t.co/AeQ95GG2rM #stocks #trading #nasdaq #nyse $XRS $MCHP $GS $BURL $VOD $IRF
Rae
30 Aug 14 05:43:49
RT @WSJ: So long, Project (Taylor) Swift. Goldman Sachs is cracking down on funny code names for projects: http://t.co/N8P5PmIPv5 $GS
mingmachine
30 Aug 14 05:24:51
RT @WSJ: So long, Project (Taylor) Swift. Goldman Sachs is cracking down on funny code names for projects: http://t.co/N8P5PmIPv5 $GS
				
				
By  +Follow August 23, 2013 10:21AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.