Thermal coal prices mostly declined on Friday as weak demand weighed on prices. Australian coal cargoes for delivery from its Newcastle terminal in December were trading at $65.25 a tonne by 1444 GMT, down 75 cents from their previous settlement. October cargoes edged up by 25 cents to $66.25 per tonne. Cargoes for October delivery from South Africa's Richards Bay terminal fell by 60 cents to $67.25 a tonne.
Demand for coal in China continues to be weak, which is putting pressure on physical coal contracts, traders said. On Thursday, Australian bank Macquarie said Chinese coal consumption continued to disappoint and showed negative year-on-year growth in July and August. The same cannot be said of Japan, as data showed that power monopolies consumed record volumes of thermal coal last month amid a shutdown of the country's 48 nuclear reactors. On the supply side in Asia, Indonesian coal exports are expected to fall 11 percent this year due to lower production, a government official said on Friday, as miners grapple with new rules which the industry fears will put some firms out of business.
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