Chinese elephant sits on coal rally

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From the AFR:

Goldman Sachs Group has responded to the dramatic coking coal rally by saying higher prices for this year’s best performing commodity may be here to stay.

Spot hard coking coal has more than doubled this year to trade above $US205 a tonne as a new Chinese government policy reduced the number of annual working days at its mines. Goldman, in a note dated Thursday, raised its 2017 price forecast by 64 per cent to $US135 a tonne and its 2018 estimate by 47 per cent to $US125. That compares to the current third-quarter contract price of $US92.50.

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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.