Coal shares tumble as China abandons limits

Original article by Peter Ker, Lisa Murray
The Australian Financial Review – Page: 13 & 18 : 9-Mar-17

China’s National Development & Reform Commission has advised that it might not reinstate restrictions on the number of days the nation’s coal mines can operate. The NDRC has indicated that this will depend on the outlook for coal prices. Shares in Australian coal producers have fallen in response to the NDRC’s statement, including Yancoal Australia and Whitehaven Coal. Thermal and coking coal prices rallied in the wake of China’s decision to limit production to 276 days year in early 2016.

CORPORATES
CHINA. NATIONAL DEVELOPMENT AND REFORM COMMISSION, YANCOAL AUSTRALIA LIMITED – ASX YAL, WHITEHAVEN COAL LIMITED – ASX WHC, STANMORE COAL LIMITED – ASX SMR, NEW HOPE CORPORATION LIMITED – ASX NHC, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, SDIC INVEST, RBC CAPITAL MARKETS, TERRACOM LIMITED – ASX TER, REALM RESOURCES LIMITED – ASX RRP, AUSTRALIAN PACIFIC COAL LIMITED – ASX AQC, ANGLO AMERICAN PLC, SOUTH32 LIMITED – ASX S32

Morgan Stanley calls coal price peak as controls relax

Original article by Peter Ker
The Australian Financial Review – Page: 29 : 5-Oct-16

The price of coking coal has risen by 177 per cent in 2016, and the price of thermal coal is up 55 per cent. However, Morgan Stanley believes that the Chinese Government’s move to further ease restrictions on the nation’s coal production may rein in coal prices. Meanwhile, the Singapore Exchange’s Adrian Lunt says the large difference between the contract price for coking coal in the September quarter and the spot price may prompt more producers to abandon quarterly pricing in favour of index-linked pricing.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED, SINGAPORE EXCHANGE LIMITED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, WHITEHAVEN COAL LIMITED – ASX WHC, STANMORE COAL LIMITED – ASX SMR, NEW HOPE COAL AUSTRALIA, AUSTRALIAN PACIFIC COAL LIMITED – ASX AQC, GLENCORE PLC, ANGLO AMERICAN PLC, TECK CORPORATION