Coal boomlets enter final furlong

The coal boomlet unleashed in China is half over it seems, from Credit Suisse:

■ CISA snubbed. China Iron and Steel Association sent a letter to NDRC on 18 Sep appealing for an increase in coking coal output. It said the current situation would allow overseas miners to meet China demand. Strangely, the NDRC called an emergency meeting for 23 Sep, invited CISA to attend, and then rejected its request and focussed on thermal coal.

■ With no supply relief in sight, China steel mills have capitulated and begun to buy pricey seaborne met coal. Previously, as met coal prices rose, China pulled out of the buying at $170/t and all higher met coal bids were ex-China, according to McCloskey.

The full text of this article is available to MacroBusiness subscribers

$1 for your first month, then:

$24.99 / month

$249 / year

Cancel at any time through our billing provider, Stripe

Share

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.