Coking coal crunched

Just when you thought it might be safe to wade back into bulk commodities, coking coal gets crunched. From the ANZ Commodity Daily:

Newc spot added 1.5% to USD82.8/t last week in light, macro-driven trade, while coking coal tumbled 9.7% to USD192.9/t as producers offered significant discounts to attract buyers. Despite the price cuts, buying interest is reported to remain very low with a weak steel market and an anticipated uplift in supply, following the lifting of force majeure by BMA, exacerbating the problem. Things are similarly negative for thermal coal at present with reports re-emerging last week of defaults and contract renegotiations between Chinese buyers and Indonesian suppliers.

ANZ Commodity Daily 672 300712

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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.