Coking coal falls heavily

We may be seeing the beginnings of a bottom for iron ore but the same can’t yet be said for coking coal. From ANZ:

Spot thermal coal fell 2.3% to USD86.37 last week, while coking coal shed 5.4% to USD153.20/t. Coking coal prices continue to drift lower as buyers stay on the sidelines awaiting the results of Q4 contract negotiations. The expectation remains for these to conclude at the USD170-175/t mark. In trade data, Australian exports of thermal coal hit a record high of 15.85mt (+13.8% m/m) in July, buoyed by increased volumes from Japan and South Korea, according to the ABS. However, July hard coking coal exports fell to 6.14mt (22.75% m/m) as China stayed away for the first time since December 2008. Iron ore finished the week down slightly at USD89/t – although this was mostly due to Friday’s USD2.00 gain following China’s approvals of infrastructure projects.

Iron ore and coking coal tend to track one another so there may be a better week ahead for coking coal.

ANZ Commodity Daily 701 100912

Comments

  1. Tinkle Tinkle down it falls
    Mirvac got him by the balls
    Off he went to Singapore
    As the price falls to the floor