Economics
Coal Seen Dropping Below $50 in Rout as Output Fails to Slow
- Miners maintaining output amid strong dollar, low oil costs
- European price may fall as low as $45, according to Nena
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Coal may drop below $50 a metric ton this year as a supply glut combines with a slide in emerging market currencies that supports exports.
The U.S. dollar’s gain to near its highest since at least 2005 against a basket of 10 leading currencies shielded earnings for producers from Australia to Colombia. China, the world’s biggest user, is turning to cleaner alternatives including hydroelectric dams to battle pollution that is killing 1.6 million people a year. Global seaborne supply will grow 1.2 percent this year, while demand may shrink 2.8 percent, according to Deutsche Bank AG.