From ANZ this morning:
Newcastle FOB physical thermal coal were down 0.7% last week to USD88.41/t. Although Chinese domestic prices were steady, supported by the ongoing falls in coal inventories – Qinhuangdao stocks down 3.7% w/w. Expected supply disruptions are also supporting China’s domestic coal price, as scheduled maintenance is performed on the Daqin railway. Coking coal also fell 1.9% w/w to USD161.86/t, as buyers await the results of Q4 contract negotiations for price direction. Meanwhile, iron ore prices fell sharply last week, down 10.1% to USD89.4/t tracking falling Chinese steel prices, but we think price weakness has been overdone. When sentiment turns, we could see a 10-15% relief rally in iron ore prices.
Hmmm, ANZ is getting less bullish by the second.
