Australia has increased its forecast for metallurgical coal exports by three percent to 191 million mt for the financial year 2015-16 (started July 1), while cutting its earnings forecast for metallurgical coal exports in the given period by seven percent to $20.1 billion, according to a report by the Australian Government Department of Industry and Science. In FY 2014-15, exports of metallurgical coal from Australia increased by three percent to an estimated 186 million mt, while the earnings figure declined by seven percent to $21.7 billion, reflecting the lower prices in the given year.
The report indicated that metallurgical coal spot prices declined in the first half of 2015 due to surplus supply, lower demand and lower production costs. Contract prices for metallurgical coal are expected to remain weak over the remainder of 2015, reflecting the continued surplus supply and weak steel prices. For the whole of 2015, contract prices are forecast to decline by 17 percent compared to the previous year.