Coal Eases from 3-Week High

Newcastle coal futures inched down toward $105 per tonne from the three-week high of $107 touched September 29th, driving this year's loss to over 15% so far amid the backdrop of ample supply.

Thermal coal output from China remained 3% higher annually in the first eight months of the year despite the one-time reduction August, as the Chinese government slowed mining activity for clear skies in Beijing's military parade.

Also, major producer Indonesia was expected to produce more than 700 million tons of coal by the end of the year, set to meet its target of 735 million.

Also pressuring prices, the increasing capacity of power generation from wind and solar has more than met the demand growth for electricity in the world's largest manufacturing sector.

Still, Beijing refrained to cut back on coal power capacity to maintain the ongoing power generation backstop.

Demand also remained robust in the near-term for Japan and South Korea, which are major clients of Newcastle coal grades.