Australian budgetAustralian EconomyCommodities

Under the bonnet, Australia’s terms of trade are falling fast

David Llewellyn-Smith
Wednesday, 29 April 2020
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Nobody cares right now given a world of depressionary data and limitless stimulus but Australia’s terms of trade are correcting fast.

Coking coal spot has fallen back to $117 in recent days. Futures are pointing lower ahead.

Thermal coal has been monstered to 2015 lows at $56 as LNG collapses across Asia. Spot prices for gas are under $2Gj and only $3Gj for contract gas. In the ToT, LNG prices are largely offset by falling oil.

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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.