Coal Prices are sliding again – What happens next?

Will coal prices stabilise, rebound or fall further?

There is definitely interest in larger capacity, low hours haul trucks, rope shovels and diesel hydraulic excavators, but could this just be the result of  miners deferring essential maintenance until equipment fails. Then scrambling to replace it.

Caterpillar and Komatsu dealers have referred to this in many of the analyst briefings issued in the last few years but the increased spending they claimed would be necessary to run older equipment, for longer has steadfastly refused to show up in their component sales figures.

Shipments of new machines are still at 20 year lows. Watch this space.

Thermal Coal Prices to Jan 2017
thermal-coal-to-jan-2017-chart

 

Metallurgical Coal Price to Jan 2017

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