Courtesy of ANZ
Newcastle September coal futures fell 0.2% to USD91.2/t, while spot coking coal is trading at USD160.44/t. The Vice Chairman of the China Chamber of Commerce announced China will remove the 40% export duty on coking coal in line with a WTO ruling. This could be reflecting softer domestic conditions. China is a high-cost swing supplier and has exported in the past during periods of weak demand. The decision will likely support domestic prices, but could place downward pressure on international benchmarks. In the year to July, China exported 693kt coke and produced 262mt. In iron ore, spot prices rose 0.3% to USD87/t yesterday. Although we are seeing signs that the pace of the price decline has slowed, the short term outlook is strongly linked to the China Rebar market, which historically has shown seasonal weakness in the Sep-Oct period.
