Whitehaven Coal says thermal coal market well supplied, posts A$11.6m H1 loss

SYDNEY, Feb 26 (Reuters) - Australia's Whitehaven Coal Ltd

WHC.AX , which reported a A$11.6 million (US$10.47 million)loss for the first half of fiscal 2014, said markets for thermal coal used in power generations remained well supplied this year.

"While this has recently impacted price levels, the inevitable rebalancing of supply is expected to benefit Whitehaven as a producer of high quality, low cost coals," the company said.

Whitehaven warned in January to expect a modest drop in prices for its metallurgical coal sales in the current quarter on subdued demand from Asian steelmakers.

Whitehaven reported a loss of A$48.6 million in the first half of fiscal 2013.

($1 = 1.1078 Australian dollars)

(Reporting by James Regan)

((jim.regan@thomsonreuters.com)(+612 9373-1814)(Reuters Messaging: jim.regan.reuters.com@reuters.net))

Keywords: AUSTRALIA WHIOTEHAVENCOAL/