China cranks up pressure on coal

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From ANZ:

Bulks declined (particularly coal) on weaker Chinese import data and rumours the PBOC issued a regulation over the weekend that commercial banks should suspend new loans to ten overcapacity (but key bulk demand) industries, including steel, cement and coal. Despite lower prices, it appears the strong arbitrage import activity in April and May was not apparent in June, with coking coal imports down 28% m/m and thermal coal imports down 20% m/m in June. This confirms the subdued market conditions for current coal demand and also indicates that domestic supplies and stockpiles are more than ample.

ANZ Commodity Daily 868 230713

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.