EURO COAL-Prices drop on weak demand combined with healthy supplies
* Global coal exports have doubled since 2003
* Coal demand grows slower than supplies
* Australian exporters cut jobs, close mines
LONDON, May 27 (Reuters) - European physical coal prices dropped on Tuesday, continuing a trend that has seen healthy supplies clash with weak seasonal and structural demand this spring.
Cargoes for delivery in June to Amsterdam, Rotterdam and Antwerp (AR) were trading at $71.85 a tonne on Tuesday afternoon, their lowest level since late February and down almost 20 percent since the beginning of the year, according to the GLOBALcoal trading platform.
The dropping prices are a result of two bearish price factors at play at the same time.
On the supply side, more coal has steadily become available for imports over the past decade, with industry sources showing a doubling of global shipments to over 800 million tonnes between 2003 and 2013.
Yet at the same time, demand growth has slowed on the back of low economic and demographic growth in industrialised countries and because of lower GDP expansion in emerging markets.
"Suppliers invested into coal mining using figures from pre-2008 which showed steady demand rises around the world," one coal trader said. Continuación...