Weakness persists in the two coals

From ANZ:

Bulk commodities showed mixed performances. Thermal coal markets declined 1.2%, but prices in the physical Newc market were unchanged, despite a continuing bearish market outlook. The IMF downgraded China’s growth forecast to 7.8% this year and 7.7% in 2014, down from its earlier estimates of 8.1% and 8.3% in April. Encouragingly, other energy consumers appear to be benefiting from lower thermal coal prices. A flurry of buying activity from South Korea and Japan could support a rebound in physical Newc prices from lows near USD75/t. Iron ore physical prices rallied 1.5% in line with gains in China domestic steel and iron ore swap markets.

Here are the charts. Thermal coal threatening another new low:

And coking coal already at another low (a few days ago) of $132:

ANZ Commodity Daily 860 100713.pdf by James Woods

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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.