Courtesy of ANZ:
Bulk commodities declined, despite a 1.7% increase in Baltic Capesize freight rates and slightly higher Chinese rebar prices on Friday. The bearish sentiment from China’s weaker than expected flash PMI read and squeeze in credit availability weighed on steel demand for bulk commodities and associated prices. Physical iron ore prices declined 1.7% to USD118.6/t, while FOB Australian coking coal prices fell 1.4% to USD134.9/t. Coal markets were under additional pressure after China’s total coal import data showed y/y growth slowed to 5% in May from 15% in April, led by a 6.5% m/m drop in coking coal imports. In contrast, Chinese thermal coal imports rose 1% m/m. Chinese total coal imports from Australia surpassed top exporter Indonesia, with Australia up 21% to 6.9mt and Indonesia down 15% to 5.8mt. China also imported more coal from Russia and the US, offsetting declines from Vietnam,Mongolia and Canada.
ANZ Commodity Daily 849 240613 (1).pdf by Jesse Barnes
