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.