The coal mining industry across the world has seen its up and downs throughout 2014 and there isn’t much evidence showing that next year will be much different. Australia is home to some of the world’s largest coal deposits and stands to be drastically affected by these market changes. According to a recent article from Australian Mining “The 2015 Energy Outlook Series: Coal” Coal prices have been on a steady decline for much of 2014 and could keep sliding in 2015.
The coal market has several factors including lower demand and increased market share from other countries that are pushing prices lower. The elevated production level of rival countries has flooded the global coal market. Also the sluggish market growth in areas such as China has led to lower demand. These factors have led to massive coal industry job cuts throughout the year of 2014 in Australia. Australian coal mining firms have been taking these drastic steps to try and stay competitive, financially stable and survive this tough period.
In the next year some types of coal such as metallurgical coal could stay steady whereas thermal coal will likely drop in price and demand. Mines with higher operational costs could start to be affected in 2015 which could mean even more job losses and less coal production. This will however start to tighten the market as fewer producers are online and exporting coal. Industry experts don’t see the lower prices lasting long and expect the prices and demand for most types of coal to rebound by 2016. This is good news for the Australian mining industry and workers as employment rates have been steadily dropping for months.
If you need OTR tires for your mining equipment in Australia, please contact us. We routinely ship new and used OTR tires to Australian mining operations.
Image credit: Australian Mining