Newcastle thermal coal price to average US$280 per tonne in 2023: report

This is lower than the average US$358 per tonne in 2022.

Newcastle thermal coal price is expected to average US$280 per tonne in 2023, Fitch Solutions reported. 

This is down from the average US$358 per tonne recorded in 2022. 

“Our forecast for 2023 implies that prices are likely to get a boost from current levels in the coming months, as energy needs increase in summer and later on in the winter months, but remain significantly below the highs reached in 2022,” the report read in part. 

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Fitch projected that  global thermal coal consumption to increase by 0.76% year-on-year in 2023, down from the 4.5% YoY growth in 2022. 

Meanwhile, thermal coal production is seen growing by 2.14%YoY in 2023 from 6.93% in 2022. 

“Together, these figures will lead to a wider global surplus of thermal coal, from 618mnt in 2022 to 723mnt in 2023,” Fitch added.