Fresh from this morning’s gloom over iron ore, comes this morning’s ANZ commodity report with the news that thermal coal is also plumbing new lows and coking coal is weakening:
Newc spot dropped 4.8% last week to USD81.5/t, while coking coal fell 0.7% to USD213.6/t. Prices have continued to decline following muted buying and high inventories. In addition, there have been more reports of defaults and distressed cargos offering steep discounts – driving prices down further. In a somewhat positive sign, however, coal stocks at Qinhuangdao are at 8.5mt as of last Wednesday – down from 8.6mt a week earlier. Stocks have been falling every week since reaching a record high of 9.5mt in mid June.
We are rapidly approaching a second half terms of trade shock here…
ANZ Commodity Daily 667 230712 (1)