Market has taken a bearish turn since the start of May. Declining Chinese domestic coal prices dragged down Pacific prices. Increased protectionism in China and India and the election of pro-renewables president in South Korea, the fourth largest importer of thermal coal, add on to the uncertainties. We do not see a lot of upside in prices for remainder of 2017. Newcastle price is expected to decline to US$74/t in Q3 before falling further to US$73/t in Q4 this year. ARA will average US$70/t in H2.