More deflation yesterday in global energy markets and it can’t come soon enough. Thermal coal led the way:
Coking coal bucked the trend:
JKM sagged as well:
Along with European gas:
It’s still about Putin:
The resumption of Russian gas flows “have calmed traders’ nerves and prices after a week of volatility,“ said Emily McClain, senior gas markets analyst at Rystad Energy. “Price risks are skewed to the upside if volumes from Russia turn out to be inconsistent. However, this risk may be limited if additional volumes indeed materialize.”
Finally, this energy shock has been huge in Chinese production, the headwaters of global inflation. Coal inflation is above 100% year on year and has flowed into everything it touches:
Metals should keep falling as it passes and tip into processed goods in due course.