Softer thermal coal contract price not as bad as expected

Australian thermal coal exporters have taken a 9.1% cut in annual contract prices but the settlement with their Japanese buyers is viewed as positive by analysts considering the much weaker spot prices, according to the Australian Financial Review.

Last week's settlement of $US61.60 a tonne for thermal coal, down from $US67.80 last year, has been confirmed by other producers, which are now using it to set their term contracts with Japanese and other Asian buyers, Marian Hookham, of energy pricing service IHS, said.

China moves to stop rush of money into coal-fired power plants

China's move to halt construction on hundreds of new coal-fired power stations is expected to slow the rush of investment into the sector but probably won't be enough to address severe overcapacity, according to the Australian Financial Review.

Despite coal consumption starting to decline in line with China's slowing economy, billions of yuan have been pouring into new power plants over the past few years to take advantage of low coal prices. As a result, the average coal plant in China is now run less than half the time.

Labor would introduce carbon market, pledge deeper carbon cuts if elected

A Shorten Labor government would slash carbon emissions by significantly more than the Turnbull-led Coalition by 2030, introduce a broad-based emissions trading scheme, and block states like NSW and Queensland from expanding land clearing, according to the Sydney Morning Herald.

Signalling that the ALP is prepared to make climate change a central point of difference from the incumbents, leader Bill Shorten said “the consequences of refusing to take meaningful action on climate change will be devastating for Australia and our economy”