Coking coal prices have dropped to new lows, bringing Australian suppliers down to sell for US$93 per tonne.
Such prices have not been seen since 2004, representing a 70 per cent fall from market highs of US$330 per tonne at the height of the boom in 2011.
The market environment has been put down to new supplies flooding the market combined with China’s lag in demand as a result of measures designed to reduce steel output.
Bloomberg reported that China’s electricity consumption has also lagged as a result of secondary industry demands.
In addition, around 80 per cent of China’s coal producers are operating at a loss.
Bloomberg intelligence Asia oil and gas analyst Lu Wang said the Chinese economy is attempting to shift away from energy intensive heavy industry and focus more on high value-added manufacturing industries.
China's economic growth is expected to slow to 7 per cent in 2015, with further scope to drop even lower, reaching slowest growth since 1990.