Coking coal up on the QLD floods

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Courtesy of ANZ:

April Newc coal prices rose USD1.50 to USD94.75/t, while spot coking coal traded at over USD167/t after flooding in Queensland’s coalfields. The Bowen Basin was hit by between 200 and 400 millimetres of rain, but the disruptions are not as widespread as the “Big Wet” of 2011. Even so it may take several weeks for operations to return to normal and the flooding will support prices of thermal and metallurgical coal in the near term. Spot 62% iron ore fines were steady around USD148.60/t, but the higher cost of coking coal could limit further upside for ore to below the recent highs near USD160.

ANZ Commodity Daily 766 290113.pdf

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.