Demand drops

The price of coal out of Richards Bay has dropped 11% so far this year as concerns around Chinese growth weigh on prices. Thermal coal prices have more than halved since early 2011 as global supply has outstripped demand. Though the International Energy Agency expects demand for coal to grow by more than 2%/year through to 2019, mostly on the back of growing Chinese demand, the falling natural gas and oil prices may have put paid to that.