Weak economy worsens glut

THE slowdown across global economies is exacerbating a coal glut that has driven prices for the fuel to the lowest level in eight years, according to Glencore. The market continued to rebalance amid weaker-than-forecast demand, said Peter Freyberg, Glencore’s head of coal. The mining company, which in February announced it would cut Australian output by 15 million tons this year and delay some projects, would continue to review its operations to find ways of saving money, Freyberg said. Coal prices have collapsed amid a broader slump in commodities that has rocked Glencore, prompting a 29 percent slump in its share price in a single day last week on concern over its debt burden. – Bloomberg