Whitehaven Coal expects prices to remain weak for some time, but sees production cuts in the US and Asia providing some support in the longer term.
The east coast coal miner improved production and sales in the September quarter but said prices continued to fall.
"The market continues to have a level of oversupply, which is unhelpful," managing director Paul Flynn told analysts.
The price for its metallurgical coal, used by the steel industry, averaged $US70.95 per tonne, down from $US75.90 per tonne in the preceding quarter.
The average price for thermal coal, used to generate electricity, was $US58.01 per tonne, down from $US60.72 per tonne in June quarter.
Whitehaven hopes metallurgical coal prices will remain steady in the December quarter, and the continued withdrawal of China from the thermal coal market means prices in that segment are expected to keep prices subdued, Mr Flynn said.
Thermal coal accounts for nearly 86 per cent of Whitehaven's total sales, although it hopes to bring this proportion down to two-thirds over the next few years.
It also said production is being cut in several countries, including Indonesia, where thermal coal exports are expected to fall by at least 50 million tonnes in 2015.
Closures of struggling US coal miners should also lend support to prices over the next 12 months, Whitehaven said.
Spot thermal coal prices currently hover around $52 a tonne, the lowest level since 2007.
Despite the weak conditions, Whitehaven's coal sales jumped 47 per cent in the September quarter to 4.48 million tonnes, due mainly to the commissioning of its controversial Maules Creek project in NSW.
More than 1.5 million tonnes of coal was produced at Maules Creek in the quarter, and production will be bumped up to an annual rate of 8.5 million tonnes by December.
The miner produced 4.31 million tonnes of saleable coal during the quarter, up 31 per cent from 3.29 million tonnes a year ago.
Whitehaven shares dropped 1.5 cents to 97.0 cents.
Share
