Increase in seaborne coal and petcoke prices impact producers

Increase in seaborne coal and petcoke prices impact producers
28 September 2018


Seaborne thermal coal and petcoke prices rose by 16-24 per cent YoY during the 1H18 period, eroding almost four per cent of the aggregate EBITDA of LafargeHolcim and HeidelbergCement, according to a Morgan Stanley report.

However, this is expected to slow or reverse into next year. Prices of seaborne thermal coal are anticipated to fall 15 per cent in 2019 compared to 1H18, with petcoke following a similar trend. This is due to lower seaborne demand from China and Japan alongside capacity expansions, which will drive the market into surplus and reduce prices.

Published under Cement News