Will Debbie spike coking coal?

Tuesday, 28 March 2017

Via Goldman:

We flag the potential risk to coking coal supply driven by the pending landfall of Tropical Cyclone Debbie in Queensland on the morning of March 28. Queensland produces 60% of global seaborne coking coal supply. Buy-rated TECK is the most exposed name in our coverage to coking coal (about 60% of 2017E EBITDA); however, we note that 100% of its coking coal production is based in British Columbia, Canada.

Background

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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.