The better news for coking coal continues. From ANZ:
Bulks were mixed, with iron ore and coking coal prices trending higher, but thermal coal prices down a touch. Chinese domestic steel markets firmed on Friday after China’s manufacturing data showed a surprisingly positive result. In addition, China’s State Council yesterday reportedly issued a 3-year plan to upgrade and restructure its troubled shipbuilding industry for more sustainable growth, which could boost sentiment this week. Iron ore swaps and physical prices also strengthened in line with better steel prices. For coking coal, the recent 3% rise in spot coking coal prices to USD134.2/t could support monthly contract negotiations, with August term contracts reportedly likely to settle around USD141/t FOB for premium hard coking coal.
Just a quick reminder as contract prices prepare to settle at $141, that government forecaster, BREE, recently projected $162 as the contract average for 2013/14 down from the $172 call in March.
