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



Date nights under $50

ACCORDING to The Bachelor falling in love involves helicopter rides, private jets, shopping trips, and we mustn’t forget the hot tubs.

Brisbane's arts and culture events centre stage

You loved the film, now you're about to love the musical. Don't miss The Bodyguard The Musical in Brisbane this July.

THE arts and culture events you don't want to miss.

Homewares stores to fulfil your Instagram dreams

No Caption

You too can become an Insta-star with these fab stores.

Top 10 Brisbane experiences to cross off your bucket list

Do yourself a favour and get amongst the food truck scene. Eat Street is a great place to start.

A GOOD bucket list doesn’t have to span continents or cost millions.

Six mega sporting events you need to be at this year

Don't miss all the action trackside this season.

IF THERE is one thing Brisbane does damn well, it’s play host.

Insider’s guide to the best rooftop bars

Eleven Rooftop Bar is one to put on your hit list.

SEE the world from a different perspective...

Where to get your hands on the best wings

Try out these bad boys at Buffalo Bar.

IS THERE anything better than a wicked bowl of chicken wings? Nope.

OPINION: Rocky travelers can't let terrorism change plans

SCENE: Police outside Piccadilly station

THIS is why I'm not changing my plans for my dream holiday.

We don't need royalties freebie: Adani

ENDLESS JOBS: A massive Central Queensland FIFO-base for Adani's $21 billion mine is expected to flood bring 1500 jobs.

ADANI confirms mine will be money-maker without $320m concession.

Browne Park neighbour on the fence about stadium upgrade

WAITING: Roland Leo needs more details regarding the proposed stadium.

Browne Park resident is waiting for planning details to be released.

Local Partners

Browne Park neighbour on the fence about stadium upgrade

The Browne Park expansion plan was welcomed by nearby neighbour Roland Leo but he's withholding judgment till he reads the planning details.


Win a $1000

GROCERY GIFT CARD!
Learn More

What to expect at Birds of Tokyo's Ipswich gig

The band will perform at the Racehorse Hotel on Friday.

BAND member Glen Sarangapany talks music, pub grub and doing shoeys

Bouldy Bush Ballad Bash a country treat

GREAT WEEKEND EVENT: Keith Jamieson at the Bouldy Bush Ballad Bash.

Country music festival to feature Jeff Brown

Revving up for Classics next weekend

Classics by the Coast, Bell Park, Emu Park

Engines set to roar at Emu Park family day out next weekend

Concert death toll revised up to 22, tour suspended

TWENTY-TWO people have been killed and at least 59 people have been injured following a terror attack in Manchester

Grief counselling medium links the living and the dead

MEDIUM: Charmaine Wilson helps the bereaved through the grieving process.

Medium helping bereaved to find closure from the grieving process.

Casual Keanu says fame is ‘cool’

Keanu Reeves in a scene from the movie John Wick: Chapter 2.

NOBODY expected much of John Wick when it was released in 2014.

Ariana Grande breaks her silence after fatal blast

According to reports quoting witnesses, a mass emergency evacuation was prompted after explosions were heard at the end of US singer Ariana Grande's concert in the arena.

The entertainment industry is in shock after attack on concert

Pitch Perfect star suing Woman’s Day over ‘liar’ articles

Actor Rebel Wilson outside court on Friday.

REBEL Wilson's career destroyed by grubby campaign, court hears.

Seven Year Switch: The boner to end all boners

Johnny’s outraged over claims he has a cracked boner.

She gulps. Her face says it all.

Bay to star in Hollywood shark thriller ‘Cage Dive’

Cage Dive, written and directed by Gerald Rascionato, is now screening in the United States of America. It had scenes filmed in Hervey Bay.

And our visiting humpback whales also make appearance.

One of Maryborough's most historic homes is still for sale

FULL OF HISTORY: Trisha Moulds is owner of the historic Tinana state known as Rosehill. The beautiful home is currently for sale.

It has been the scene of both joy and tragedies over the years.

The face of the Sunshine Coast's overpriced rental crisis

Alyx Wilson had to rent a $385 unit in Currimundi because the market was too competitive for cheaper rental housing. She is now renting a room from friends who own a house in Currimundi, and says its much more affordable.

Young people feel the strain in competitive, expensive rental market

WATCH: Take a tour of a tradie's dream home

5a Bruce Hiskens Court, Norman Gardens, going for $720,000. INSET: Lea Taylor.

Huge block with potential for anything

Deputy Premier makes massive call on controversial sand mine

Aerial view of the proposed Forest Glen sand mine.

BREAKING: State Government makes huge call on Coast sand mine plans

Ready to SELL your property?

Post Your Ad Here!