Fitch raises thermal coal price predictions as energy crisis persists

Metals cut on growth revisions

Fitch Ratings has cut the price assumptions of most metals and mining products on fears of revised growth expectations but has raised the predictions of thermal coal costs on the back of the growing energy crisis.

As European gas prices continue to rise, the ratings group has predicted that reliance on coal-powered energy generation will increase over 2022-2025. Prices will rise even higher over 2024-2025 as expected new capacity in coal-producing countries remains limited and coal mining costs increase. However, long-term assumptions for thermal coal remain unchanged as Fitch predicts "consumption in China should gradually decline". Energy rationing: The 'winners' from further gas shortages - if any A global economic slowdown and expectations of weaker short-term demand have pushed copper a...