The Chinese energy bubble continued to burst yesterday as coking coal futures were put to the sword again:
Given the collapse in Chinese steel output, this was the craziest of the energy bubbles. Really, the only reason for its bid was some possible switching from thermal to coking coal in power consumption but that was always a longbow. Otherwise, it was purely going up because so was every other energy raw material. So it’s no surprise to see it the weakest on the way down.
Policymakers are still applying the jackboot which was enough to sink thermal coal in China:
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