Thermal coal prices fall

Thermal coal prices fell on Friday as weakening demand in Asia and Europe pulled down energy markets. Economic growth in China and Germany, Asia's and Europe's biggest economies respectively, has stalled, prompting reduced demand for oil and coal, the world's two most important energy sources.
European API2 2015 coal futures were trading at $72.45 a tonne on Friday afternoon, down half a dollar since their last close and the lowest level since the height of the financial crisis in March 2009. Adding to the malaise for coal exporters is that China will implement coal import tariffs on October 15, in a move to protect its domestic miners as well as an effort to reduce coal use to fight its soaring pollution. "The import tariffs will deal a blow to both thermal and coking coal exporters targeting the Chinese market, at a time when the sector is already facing a price slump due in large part to slower Chinese demand," political risk consultancy Eurasia Group said in a research note this week.