Abendroth Fortel Releases the Thermal Coal Market Assessment

Due to exclusive research, the company is aiming to stay ahead of the curve and provide up-to-date information for market users

MARINA BAY, Singapore - June 30, 2022 - PRLog -- Abendroth Fortel, a leading financial services adviser and a well-reputed commodity broker aiming to provide its clients with an array of investment opportunities in the commodity markets, today announced the publishing of the thermal coal market overview.

Ling How Haron, Head of the Research Department for Abendroth Fortel, said: "Our market overviews include data on industries, customers, competitors, and other market factors. We assist our clients in determining the supply and demand for a certain product or service. They can make more educated decisions regarding possible marketing strategies based on our findings."

Experts from the Research Department revealed their view on the thermal coal market through the following highlights:

• The firm's assessment of the short-term supply conditions is marginally bearish. Both Atlantic and Pacific basins continue to see supply increases which would put headwinds on prices. The gap between Atlantic and Pacific supply chain capacity utilization narrowed even more, which has historically been a favorable outcome for API2 prices. It has been noticed evidence of inventory build-up in important coal-consuming regions. Coal prices are likely to fall as a result of this factor.
• Short term demand is bearish. The import arbitrage into the Chinese market continues to be open which is overall supportive for seaborne coal demand. Indian import arbitrage remains negative and has deepened and this would likely deter other imports. The forecast for the Fossil fuel power generation capacity utilization shows a drop-in share of fossil fuel in overall power generation, this is likely to reduce demand for coal.
• Macroeconomic conditions are bullish. The currency impact index also indicates price positive developments as it indicates higher purchasing power of key coal-consuming countries. The energy intensity indicator reverted bullish as improving conditions for the consumption of coal have been picked up. This is supported by the latest update for manufacturing activities which showed that conditions have improved. This is likely to provide support for prices.