Agoracom

Global thermal coal demand will probably grow at a slower-than-expected pace in 2009 amid slower imports from Europe and Japan, the world's No. 1 thermal coal importer, an Australian government forecaster said on Monday.

Total demand growth for thermal coal in 2009 was revised down to 3.2 percent from this year to 744.9 million tonnes, versus an earlier growth forecast of 3.7 percent at 730.7 million tonnes, the Australian Bureau of Agricultural and Resource Economics (ABARE) said in its September quarterly bulletin.

ABARE said the rise in global demand is expected to be met by higher exports in key producing countries, including Australia, Indonesia and Colombia, on the back of new projects and increased infrastructure capacity.

The price of thermal coal, used for power generation and in the making of cement, touched a record high of $201 a tonne in early July, but has since shed about $60 on expectations of lower European demand and similar losses in the oil and gas markets.

Chinese thermal coal imports are expected to remain steady at about 43 million tonnes in 2009, but exports from the nation, currently world's sixth-largest coal exporter, were forecast to drop nearly 12 percent to just 37 million tonnes next year -- making China an overall importer of the fuel, ABARE said.