More big drops for coking coal contracts

Friday 18 December 2015

From Mac Bank:

The final met coal contract settlement for 1Q16 emerged on Tuesday, with semi-soft coking coal (SSCC) coming in at $66/t FOB Australia, down 7% QoQ. The hard coking coal (HCC) and pulverised coal injection (PCI) contract prices had earlier been concluded at $81/t and $69/t respectively, down 9% and 3% QoQ.

This is why the terms of trade hits keep coming for months after spot prices collapse as quarterly and longer duration contracts reset.

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.