The Newcastle price sets a new yearly low for globalCOAL NEWC index, while South Africa’s Richards Bay prices did not fare much better with the globalCOAL RB index sinking 10.28% in the same period to $US60.80/t.

The globalCOAL DES ARA index, considered to be South African spot thermal-coal prices plus freight, also plummeted 15.34% to $US64.55/t as the global financial crisis continues to rock the Eurozone.

While there is an absence of news on how fixed export contract negotiations are progressing for the new Japanese financial year starting next month, ABARE analysts have given their take on the price differences expected for this year.

“Contract prices are likely to fall substantially for the 2009 Japanese financial year because of the wide gap between spot and contract prices which has developed over the past six months,” ABARE analysts Kate Penney and Robert New said.

The pair also forecast sharply lower global demand, continued growth in world supply, and assumed a depreciation of the Australian dollar.

The ABARE analysts also noted thermal coal contract prices settled at $US125/t for the current Japanese financial year were 125% higher than the previous year.