From ANZ:
Iron ore prices ended the week with a 5% drop, the sharpest fall since mid-March when China’s growth expectations for this year were reduced. Iron ore prices are now sitting around 6-month lows and remain under pressure from the weakness in Chinese steel prices. Coking coal prices also posted the 4th consecutive week of declines to USD144.9/t, with prices at three and a half year lows. In response, Baltic Capesize rates (key gauge for iron ore and coal shipping), turned lower for the first time in 4 weeks. Coal markets could be hit by China’s National Energy Administration’s proposal to ban high sulphur coking coal imports alongside a proposed ban on low calorific value (CV) thermal coal imports to protect domestic producers. At this stage, there is still uncertainty over the legislation, but if implemented, US coking coal imports to China could decline. In addition, domestic and global prices for high CV thermal coal could potentially be supported by the ban.
