Insight

Where next for JPU pricing?

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In this insight, we have analysed supply, demand and costs of typical JPU-type supply and present a forecast of JPU prices.  The premium will stay high in the short-term: global oversupply persists but for JPU-type supply, availability is decreasing.  The premium declines over the mid-term as supply increases from new projects with high quality bituminous coal, but increases to almost US$10/t by 2035 (JPU price of US$121/t in real US$2013).

Table of contents

  • Executive Summary
    • Typical JPU contract volumes (Mt)
    • The Delta – JPU contract versus FOB Newcastle spot (US$/t)
  • Development of the high ash market: what it means for Asia-Pacific pricing
  • Japanese power generation: how long until normal returns
  • JPU pricing: the future

Tables and charts

This report includes 7 images and tables including:

  • Where next for JPU pricing?: Table 1
  • Growth of High Ash Market from Australia: 2007-2013
  • JPU typical supply availability and Japan’s declining share of the Asia-Pacific high-bituminous market
  • Price forecast, US 2013 US$/t
  • Where next for JPU pricing?: Table 2
  • JPU contract and FOB Newcastle spot price relationship (US$/t)
  • Where next for JPU pricing?: Image 2

What's included

This report contains:

  • Document

    Where next for JPU pricing?

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