Thermal coal resumes its decline

From ANZ:

Thermal coal markets continued to decline. Physical bids fell as the Newcastle swaps market continues to be subjected to bearish sentiment. With China on holidays, the market is also quieter than usual. Demand for lower-quality coal remains subdued, with India hit by a decline in the currency (INR), start of the monsoon season and an overall slump in industrial production. In other news, Australian total coal (coking and thermal) exports from Queensland rose 15% m/m in May to 15.9mt, despite weaker prices.

It looks like resumed Australian volumes are driving down the prices of both thermal and coking coal. The falling dollar is well timed.

ANZ Commodity Daily 841 120613

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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.