KOL - Jeremy Grantham Thermal Coal Is Not Dead Yet
The legendary hedge fund manager, Jeremy Grantham, said thermal coal is dead meat.
However, Newcastle coal price is telling a difference story as shown below.
Since late 2016, high quality Newcastle Thermal coal price (6,000kcal) has rallied strongly and still remained strong in early 2019.
What is happening?
Let’s take a look at demand and supply dynamic for Australian Newcastle Thermal Coal.
Demand
Thermal coal remains the cheapest and reliable fuel for power generation in developing Asia. Thermal coal’s primary use is in electricity production, and thermal coal demand is therefore driven strongly by