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Demand for coal will remain strong for at least two more decades even as nations take action to decarbonize, according to New Hope Corp., a major Australian exporter.

“Many communities, particularly the large cities of Asia, will require coal for affordable and accessible baseload energy provided by our customers to power homes and industries in the next two decades and beyond," Chief Executive Officer Reinhold Schmidt told an annual meeting. The exporter sells to markets including India, Vietnam and Japan.

Economic recoveries in key markets and the limited availability of alternative fuels have supported recent price gains, while from early next decade demand for seaborne coal will likely exceed production, Schmidt said Thursday at the meeting. 

Benchmark prices for high-quality thermal coal at Australia’s Newcastle port surged through last month on tight supply and as nations across Asia grappled with power shortages. While coal has slumped about 42% from a record on Oct. 18, the fuel continues to trade well above its five-year average price.

Thermal coal futures in China fell as much as 2.1% to 808 yuan ($126.70) a ton in early Thursday trading, to extend declines from last month’s high.

 

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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