Barclays Capital said that potential disruptions to Colombian and Australian supply could offer some support to coal prices in the final quarter of the year.
Analyst Miswin Mahesh in a note said that “Colombian supplies could be at risk, given that seasonally it is going through the wettest months of the year and there are expectations of a stronger-than-normal rainy season affecting both mining throughput and transportation infrastructure.”
He said that “Australian supplies are also at risk from the La Nina weather phenomenon repeating itself noting, A combination of these two supply-side risks, combined with a healthier than expected winter appetite for coal in both of the basins, could provide a surprise boost to prices in this final quarter of the year. But this will only come if stocks at both the consumer as well as producer end reach critical levels.”
(Sourced from Montel)