European Next-Year Coal Set for Lowest-Ever Close as Glut Grows
Nov. 4 (Bloomberg) — European thermal coal for delivery next year headed for its lowest-ever close as Glencore Plc said it boosted third-quarter output amid a glut of supply in the seaborne market.
Next-year coal for delivery to northwest Europe fell as much as 1.1 percent to $70.35 a metric ton by 11:35 a.m. London time, according to broker data on Bloomberg. That’s the lowest intraday price since March 2009 and would be the lowest close since at least September 2007, when Bloomberg began compiling data for the contract.
Barr, Switzerland-based Glencore said today in a statement total output from its mines in Australia, South Africa and Colombia rose 9.2 percent to 40.2 million tons from 36.8 million a year ago.
A warmer-than-usual winter in Europe and increased hydropower production in China have cut global demand for coal in electricity generation, according to consultants Energy Aspects Ltd. The global glut may swell by 58 percent next year to 19 million tons, according to UBS AG.
To contact the reporter on this story: Alessandro Vitelli in London at avitelli1@bloomberg.net To contact the editors responsible for this story: Lars Paulsson at lpaulsson@bloomberg.net Rob Verdonck, Bruce Stanley
