Anglo American expects seaborne met coal demand to rise 8% in 2014
Anglo American expects demand for seaborne metallurgical coal to rise by 8% year-on-year in 2014, it said in its preliminary annual results on Friday February 14.
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Seaborne metallurgical coal demand is expected to increase to around 305 million tonnes, the miner said.
Anglo American expects coking coal prices to remain subdued in 2014, however.
“US exports are starting to reduce in response to lower prices; however, record Australian production has more than offset any reductions,” it said, with further output awaited from greenfield projects in Australia in the second half of the year.
Anglo American posted an 89% year-on-year drop in underlying profits in its metallurgical coal business in 2013, despite record production.
Seaborne coking coal prices are at their lowest level since 2009, Standard Bank analysts said on Wednesday February 12.
Metal Bulletin’s daily hard coking coal index stood at $114.34 per tonne fob Australia on Friday.
Anglo American’s fully-owned Grosvenor coking coal project in Australia is on track to reach longwall production by 2016.