Coking coal contracts cut

From ANZ:

Bulk commodities firmed. The spot iron ore market was supported by firming China steel prices. In coking coal, BHP settled June contract prices for premium hard coking coal at around USD154-157/t FOB Australia. This is consistent with our forecasts of USD155/t for the second quarter, with a cautious China demand outlook dictating sentiment. We would expect prices to firm in the second half as seasonal demand starts to improve, although the slow start to the normally better second quarter suggests most traders will want to see more consistent (positive) Chinese data before wading in.

By my calculations that’s another 1%+ off the terms of trade.

ANZ Commodity Daily 819 080513

Share

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.