Coal gets smacked too

Advertisement

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)

Advertisement
About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.