{"id":12725,"date":"2012-07-25T01:29:50","date_gmt":"2012-07-24T23:29:50","guid":{"rendered":"http:\/\/www.myza.co.za\/07\/coal-output-to-shrink-as-mining-margins-in-retreat\/"},"modified":"2012-07-25T01:29:50","modified_gmt":"2012-07-24T23:29:50","slug":"coal-output-to-shrink-as-mining-margins-in-retreat","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/coal-output-to-shrink-as-mining-margins-in-retreat\/","title":{"rendered":"Coal output to shrink as mining margins in retreat"},"content":{"rendered":"<p>\t\t<span><\/span><\/p>\n<p>* Bankruptcies, project stoppages hit industry globally<span><\/span><\/p>\n<p><span><\/span><\/p>\n<p>* Further price slide possible as U.S. exports soar<\/p>\n<p><span><\/span><\/p>\n<p>* Costs exceed selling price as some currencies rally<\/p>\n<p><span><\/span><\/p>\n<p>By Jacqueline Cowhig<\/p>\n<p><span><\/span><\/p>\n<p>LONDON, July 24 (Reuters) &#8211; Global coal output is set to<br \/>\nshrink over the next year or two as miners grapple with a<br \/>\ncombination of low prices driven by cheaper alternatives, weak<br \/>\ndemand, and cost and currency headwinds.<\/p>\n<p><span><\/span><\/p>\n<p>Output has already begun to fall, but so far only by a<br \/>\ncouple of millions of tonnes &#8211; a tiny fraction of the global<br \/>\nannual seaborne coal trade of 750 million. Analysts and industry<br \/>\nexecutives say cuts could soon reach dozens of millions of<br \/>\ntonnes to bring supply in line with weaker demand in China and<br \/>\nEurope.<\/p>\n<p><span><\/span><\/p>\n<p>The United States is already cutting due to low prices and<br \/>\ncompetition with cheap shale gas, while high-cost Russian and<br \/>\nAustralian miners are also trimming production, and even<br \/>\nlower-cost rivals could follow suit due to high labour costs and<br \/>\nstrong local currencies.<\/p>\n<p><span><\/span><\/p>\n<p>It could take a couple of years for the market to find a<br \/>\nbalance, prolonging a period of painfully low profits for<br \/>\nhigher-cost miners while helping out utilities, steel firms and<br \/>\ncement makers with low input prices.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;The current oversupply predicates production cutbacks and<br \/>\nthe delay or cancellation of expansion plans,&#8221; Bank of America<br \/>\nMerrill Lynch said this month. &#8220;Although we expect the surplus<br \/>\nto shrink in 2013, it will not disappear,&#8221; it added.<br \/>\n\u00a0 <span class=\"label\"><strong>Continued&#8230;<\/strong><\/span><\/p>\n<p><span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>* Bankruptcies, project stoppages hit industry globally * Further price slide possible as U.S. exports soar * Costs exceed selling price as some currencies rally By Jacqueline Cowhig LONDON, July 24 (Reuters) &#8211; Global coal output is set to shrink over the next year or two as miners grapple with a combination of low prices [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[830,2370,183],"class_list":{"0":"post-12725","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-news","8":"tag-reuters","9":"tag-south-africa-2","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/12725","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=12725"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/12725\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=12725"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=12725"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=12725"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}