Yancoal Australia Posts Loss Amid Coal Glut - WSJ.com

Yancoal Australia Posts Loss Amid Coal Glut - WSJ | Yancoal Australia Ltd. posted a first-half loss and said there is little sign that the global coal glut is easing. The downbeat outlook came as Yancoal named Reinhold Schmidt, a former executive at Glencore Xstrata, as the Australian company's chief executive. He succeeds Murray Bailey, who stepped down in March from the company, which is controlled by one of China's biggest coal producers. "For both metallurgical and thermal coal markets to return to balance, the market will require production cuts from some producers," Yancoal said Monday. "At this stage, there is no sign of any production cuts so the outlook remains weak." . . . .Thermal-coal prices in Australia are now below US$80 a ton—about half the level of coal's 2008 peak. A weakening of the Australian dollar has helped producers to some extent, but hasn't entirely offset the decline in prices, said Yancoal. The company operates coal mines in New South Wales and Queensland states and has been cutting costs by using fewer contractors.The Australian dollar fell 14% against the U.S. currency between mid-April and the end of June.