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. To read our full disclosure, please go to: http://www.equities.com/disclaimer


Signup for our daily newsletter and get our best articles emailed right to you!

Results for gs
hakim bouanane
22 May 15 07:17:58
@smartertrader $GS at 206, here we go
FinSentS SP500
22 May 15 07:14:12
$GS:US Witkoff taps ex-Goldman dealmaker for NY Daily News bid: sources #GOLDMAN SACHS GROUP INC http://t.co/WeYhlVs9QN #SP500
WKRB News
22 May 15 07:13:25
Insider Selling: Goldman Sachs CEO Sells $1,768,556.25 in Stock $GS http://t.co/abEJxSpo9H
Stefano Marchetti
22 May 15 07:13:02
RT @GoldmanSachs: $GS China strategist Kinger Lau tells @barronasia what's driving gains in #China shares, opportunities http://t.co/uspQ6L…
Long Term Investor
22 May 15 07:12:40
$gs looks like it wants a new level
StockNewsWires
22 May 15 07:03:04
$GS: Insider Selling: Goldman Sachs CEO Sells $1768556.25 in Stock (GS): http://t.co/TE1Le821Ss
binaryoptionsocial
22 May 15 07:01:09
IHNASDAQOMX: MINE MannKind Corp. Ex-Div Date Click Here -> http://t.co/66HRgDprl1 Trending $MINE $GS $EYES $NBG… http://t.co/Csk7miIhta
ShadowStock
22 May 15 06:58:06
Hedge Funds Most Concentrated Stocks Have Been Outperforming - $GS $EXPE $NFLX $TWX $TWC http://t.co/CBZep28KMU via @ValueWalk
IH NASDAQ OMX
22 May 15 06:56:03
MINE MannKind Corp. Ex-Div Date Click Here -> http://t.co/ZHLHRA6mg4 Trending $MINE $GS $EYES $NBG #MINE #nasdaq #stocks
Dakota Financial
22 May 15 06:54:04
Insider Selling: Goldman Sachs VP Sells $2,936,830.00 in Stock $GS http://t.co/DiNCeM4gfS
leahanne
22 May 15 06:52:07
GS Golden Star Resources Ltd. Day High Click Here -> http://t.co/UWMey9jh0i Trending $GS $MU $IAG $FEYE #GS #stockmarket #stock
Edward Graham
22 May 15 06:51:35
People just don't understand the intracacies of the stock market. How manipulation and running stocks is common practice. $SHAK $GS $C $BAC
M.E.D.M.8
22 May 15 06:48:08
RT @GoldmanSachs: $GS women discuss work/life balance, #motivation @ Association of Women in Finance #Tokyo: http://t.co/SQAfUerKn1 http://…
Johnny Trades
22 May 15 06:47:22
Banks turn $GS $BAC $C higher $JPM still weak
ProVesting
22 May 15 06:47:02
$GS: Oil Falls as Dollar Advances While Crude Supplies Remain Ample: http://t.co/0Bs9Scfm8i
LaChupacabra
22 May 15 06:44:55
Daily opening buying frenzy in $NDX. Led by $AAPL and $GILD. $GS Up $1 to $206
Sleek Money
22 May 15 06:35:34
Goldman Sachs CEO Sells $20,666,255.00 in Stock $GS http://t.co/jWX3Uly7uU
BreakingStocksNews
22 May 15 06:33:04
$GS: Insider Selling: Goldman Sachs COO Sells $9586415.00 in Stock (GS): http://t.co/Thf9AvsBRO
DennyT
22 May 15 06:31:12
ACT Actavis, Inc. EOD Data Click Here -> http://t.co/13D57bdXHH Trending $ACT $XOP $GS $GE #ACT #tradeideas #stockmarket
ProTradersNews
22 May 15 06:22:02
$GS: Libyan Power Struggle Threatens Fund's Goldman, SocGen Lawsuits: http://t.co/MnimNPy5Cj
Trading Quotient
22 May 15 06:20:35
22 May 2015: Uptrend Stocks in Financial $AIZ $AXP $BAC $BBT $BK $C $DFS $EFX $ETFC $GS http://t.co/4KZ6YzFL3T
gregorylent
22 May 15 06:10:20
@WritingFactory @AndrewMills2013 yes, $GS has a big effort going on bitcoin/blockchain i think
Gr8wklyoptions
22 May 15 05:53:54
$AAPL $AMZN $BABA $BIDU $CELG $CVX $FB $FSLR $GILD $GLD $GMCR $GOOG $GOOGL $GPRO $GS $IWM $LNKD $NFLX $PCLN $QQQ $SBUX
danrocks
22 May 15 05:46:08
SYN Synthetic Biologics, Inc. Ask Click Here -> http://t.co/IS910V7Blz Trending $SYN $GS $AKS $MMM #SYN #nasdaq #share
IH News Desk
22 May 15 05:46:05
TBT ProShares UltraShort 20+ Year Treasury EOD Data Click Here -> http://t.co/YDsm6UVE2N Trending $TBT $GS $KERX $MDR #TBT…
Stock_Tracker
22 May 15 05:37:36
GS Goldman Sachs Group, Inc. E.P.S. Click Here -> http://t.co/2MTJJ37U9t Trending $GS $VISI $SLW $AA #GS #investing #tradeideas
PolgarStocks
22 May 15 05:37:22
$JNK Stock Forum Updated Friday, May 22, 2015 08:07:13 AM $GS $GILD $FWDG $USO http://t.co/EULLawyKhB
Investors Hangout
22 May 15 05:31:34
AMBA Ambarella, Inc. Ideas Click Here -> http://t.co/uENrcCLAsS Trending $AMBA $GS $SH $JNK #AMBA #investing #invest
dasan
22 May 15 05:29:47
$GS giving $QRVO some attention today. I expect sell-side to pick up this name. One of my favorite neglected stocks no one knows about.
daryl
22 May 15 05:18:41
@nypmetro @nypost He's been hired by $GS meanwhile.
Kristin
22 May 15 05:00:45
$FL delivered good numbers, more to come. $GS spooking investor to sell this & Buy $DECK instead. Silly recommendation. Just BTD both.
3bac News
22 May 15 04:50:31
RT @nicohof1: nicohof1: nicohof1: am_alerts: $GS active, relative volume: 4.9, 1H, 7:00 AM, #nyse $DJI $SPYhttp://binaryoptionsocial.comhtt…
BreakingStocksNews
22 May 15 04:47:03
$GS: Schaeuble Said to Cite Option of Greek Parallel Currency: http://t.co/N3rQr8q6ij
nicholas
22 May 15 04:45:28
nicohof1: nicohof1: am_alerts: $GS active, relative volume: 4.9, 1H, 7:00 AM, #nyse $DJI $SPYhttp://binaryoptionsocial.comhttp://binaryopti…
nicholas
22 May 15 04:28:56
nicohof1: am_alerts: $GS active, relative volume: 4.9, 1H, 7:00 AM, #nyse $DJI $SPYhttp://binaryoptionsocial.comhttp://binaryoptionsocial.c…
nicholas
22 May 15 04:12:37
am_alerts: $GS active, relative volume: 4.9, 1H, 7:00 AM, #nyse $DJI $SPYhttp://binaryoptionsocial.com
ActiveVols
22 May 15 04:11:57
Update #StoryStocks Basis $XLF Added Jul 17 $GS $AIG #LongPremium & $BAC #ShortPremium
Alpha Maven Alerts
22 May 15 04:01:51
$GS active, relative volume: 4.9, 1H, 7:00 AM, #nyse $DJI $SPY
binaryoptionsocial
22 May 15 03:57:14
MonsoonWM: A Tight Range: $PAA $CVS $OCR $LL $HNGSF $SHOP $DIS $GS $IBM $RSHC $T $VRX $VZ $AAPL $INTC $M… http://t.co/i8HJt85krl
Marvin Clark
22 May 15 03:56:38
A Tight Range: $PAA $CVS $OCR $LL $HNGSF $SHOP $DIS $GS $IBM $RSHC $T $VRX $VZ $AAPL $INTC $MSFT $FB $ACT http://t.co/cz4BrSquMy
PolgarStocks
22 May 15 03:52:05
XLE Energy Select Sector SPDR % Change Click Here -> http://t.co/vyr6ThuKpu Trending $XLE $AEZS $GS $AKRX #XLE #invest #stockmarket
Rosner Stocks
22 May 15 03:50:50
XLY Consumer Discretionary Select Sector SPDR Ex-Div Date Click Here -> http://t.co/IrywG86lsO Trending $XLY $DBC $AIG $GS #XLY…
DennyT
22 May 15 03:49:33
XIU.TO iShares CDN S&P/TSX 60 Index Fund Ideas Click Here -> http://t.co/m2vEQDRXg8 Trending $XIU.TO $QTMM $ADXS $GS #XIU.TO #stock…
DennyT
22 May 15 03:49:13
UCO ProShares Ultra DJ-UBS Crude Oil Ideas Click Here -> http://t.co/hprWk5TowJ Trending $UCO $TWTR $DAL $GS #UCO #tradeideas…
nasdaqfan
22 May 15 03:49:05
TMD.TO Titan Medical Inc. Filings Click Here -> http://t.co/xUvfZ5Hp8X Trending $TMD.TO $XLV $GE $GS #TMD.TO #stockmarket #nasdaq
leahanne
22 May 15 03:47:41
SID Companhia Siderurgica Nacional, SA Tick Click Here -> http://t.co/yD2K7FbVkW Trending $SID $SGLB $GS $IDG #SID #pennystocks…
leahanne
22 May 15 03:47:40
TMV Direxion Daily 20 Year Plus Treasury Bear 3x Shares Ideas Click Here -> http://t.co/gOApWstZwQ Trending $TMV $TLT $MU $GS #TMV…
jim50
22 May 15 03:47:39
SID Companhia Siderurgica Nacional, SA Shares Click Here -> http://t.co/8MfAWvgHG9 Trending $SID $PANW $CTIC $GS #SID #investing…
leahanne
22 May 15 03:46:07
PPS Post Properties, Inc. Dividend Click Here -> http://t.co/OgaINIbeOo Trending $PPS $FTI $GS $BAC #PPS #investing #stocks
IH News Desk
22 May 15 03:45:04
QASP Quasar Aerospace Industries, Inc. Day Low Click Here -> http://t.co/n7VGH6MUQO Trending $QASP $GS $ERN $MDY #QASP #stock…
				
				
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.

Login or Register

LOG IN