News

Coal price will improve by April, industry experts say

The coal price is expected to reignite, a Brisbane conference has heard.
The coal price is expected to reignite, a Brisbane conference has heard. Peter Holt

COAL is coming back.

During perhaps the most popular session in Brisbane's Major Projects Conference, speakers from a mining giant and stockbroking expert backed the future of the black mineral.

GVK Hancock Coal chief development officer Justin Crotty said despite being years away from delivering, GVK had strong demand for coal from its Alpha project in the Galilee Basin.

Mr Crotty even gave the timing - coal prices would improve from April next year.

He said if prices did not rise before then, mining companies would cut production.

If supply falls and demand remains the same, prices would have to increase.

"We have demand for 43 million tonnes," he told the Brisbane Major Projects Conference.

"It's a good indicator that (buyers) have confidence in coal."

His comments were timely, coming as HSBC released figures showing Chinese manufacturing was to hit a 13-month high.

HSBC chief economist on China Hongbin Qu said the report "confirmed that the economic recovery continues to gain momentum towards the year's end".

Manufacturing in China has been closely watched as the coal industry waited for signs of improving demand.

During his speech, Mr Crotty said industry analysis for GVK showed all but two thermal coal mines in Australia were struggling.

With such strong interest in GVK Hancock's coal, he said it showed "prices will improve and those thermal coal mines underwater will experience better times".

"We're near the bottom and it's only up from here."

RBS Morgans chief economist Michael Knox said of all commodities, oil prices always hit the bottom first before beginning to rise, followed by metals including iron ore.

Metallurgical coal - used for steel production - was always later, followed by thermal coal.

"In coming months you will see a base in metallurgical coal," he said.

"You'll be able to say in a year's time that the low in metallurgical coal is behind us and you will see a rally (in prices).

"Six months later you will see a rally in thermal coal."

The Bowen Basin contains almost all Queensland's metallurgical coal.

The Surat Basin to the west of Toowoomba and the Galilee Basin, west of Rockhampton, are emerging as major centres for mining thermal coal.

Topics:  coal, gvk hancock coal, rockhampton




REVEALED: The most common smartphone killer...

Customers try out rose gold iPhone 6s and 6s Plus smartphones at the Apple Store near the West Lake in Hangzhou city, east China's Zhejiang province, 25 September 2015.Apple launched its iPhone 6s or 6s Plus around the world on Friday (25 September 2015). Apple enthusiasts in China can now pick up their pre ordered smartphones at Apple stores. The pre order channel on Apple's official website is accessible for a limited time every day. According to reports, iPhone 6s and 6s Plus are expected to break sales records currently held by the iPhone 6 and iPhone 6 Plus of last year.

It has claimed nearly 9 million smartphones.

GIG GUIDE: Gigs across CQ in the coming weeks

A Breach of Silence, the band.

Lots of live music gigs set for Central Queensland stages

FLASHBACK: Drunk barrister nearly buried alive

Rum, brandy or scotch is always the fall back remedy.

Barrister's drunk venture ends in hearse

Latest deals and offers


Your Chance to Win

A Holiday to Kingfisher Bay!
Learn More

GIG GUIDE: Gigs across CQ in the coming weeks

A Breach of Silence, the band.

Lots of live music gigs set for Central Queensland stages

MOVIE REVIEW: Matt Damon in top form for Jason Bourne return

ON A MISSION: Matt Damon in a scene from the movie Jason Bourne.

LONG-awaited return of spy franchise is wall-to-wall action.

The Bachelor wash up: bacon, plank offs and that white rose

Richie Strahan, second from left, with bachelorettes Eliza, Faith, Noni and Janey in a scene from episode one of the fourth season of The Bachelor.

RICHIE Strahan meets some beautiful, and colourful, bachelorettes.

The Bachelor: Vinteaea tells why she had to walk out

Vintaea Carlos was one of 22 "bachelorettes" looking for love on the fourth season of The Bachelor.

Queensland beauty leaves Richie at rose ceremony.

Amber Heard claims Johnny Depp is stalling divorce

Amber Heard claims Johnny Depp is delaying their divorce

Tackling depression through song and story

BUSKER: Brian Musch.

Giving back through song and speech

The Bachelor host: this year's season is a cracker

The Bachelor host Osher Gunsberg.

GUNSBERG says tonight will be "the best night of TV of the year".

You can own this Queensland town for just $1

Yelarbon

Unprecedented auction of town's business centre with no reserve

Work starts on $15M Caloundra apartment building

Turning the first sod at the Aqua View Apartments site in Kings Beach are (from left) husband-and-wife developers Alex Yuan and Stella Sun with construction company Tomkins director Mike Tomkins and Councillor Tim Dwyer.

Developers excited about addition to Kings Beach skyline

Iconic Denison St building sold for close to $1M

The Swan Hotel building in Denison St.

ONE of Rockhampton’s most iconic buildings has been sold

Unique Rockhampton bar hits the market

HOT PROPERTY: Cuban themed bar Chango Chango is up for sale.

Popular Rocky bar hits the market.

72-year-old Coast developer set to start new project

GREEN LIGHT: The Cosmopolitan has been approved for development at Cotton Tree.

Meet the Canberran set to deliver another chapter for Coast suburb

Plans revealed for 1500-lot 'master-planned community'

Precinct will be bounded by Boundary St and Shoesmith Rd