BHP

(ASX:BHP)

“Even including the impact of Cyclone Debbie, coal created EBITDA of $US3.8 billion,” BHP chief financial officer Peter Beaven told analysts during its FY17 earnings call.

“Metallurgical coal prices increased significantly in the first half of the 2017 financial year, due to China’s supply side reform policy and adverse weather conditions in China and Queensland.”

China’s coal supply reform policy was a positive for the sustainability of the industry in the long term, and yet it remained a source of uncertainty, Mr Beaven said.

Over the longer term, it would be emerging markets such as India which would support seaborne demand growth.