Coking coal contracts fall again

Wednesday, 17 July 2013

I’ve obviously been following the coking coal price slide closely. Three weeks ago BHP announced a new quarterly contract at $145. Wesfarmers is out today with a new one $5 lower:

Compared with a free-on-board price of $US167 per tonne from April to June, a price of $US140 a tonne from is expected from July to September for Curragh’s met coal, which is used in the manufacture of steel.

Spot is trading at $130. BREE’s full year forecasts for this year and next are $160, cough.

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.