Daily iron ore price update (coal soars on Indonesian ban)

The iron ore complex saw a big jump in spot prices on Tuesday, up nearly 3% to get back above $120USD per tonne, while Dalian coking coal hit a two month high:

Meanwhile, the recent Indonesian ban on coal exports is hitting thermal coal futures in mainland China:

China’s thermal coal futures surged by as much as 7.8% to kick off 2022 on concerns of supply disruptions after Indonesia, its biggest overseas supplier, banned exports.

The most-active thermal coal futures contract, for May delivery, on the Zhengzhou Commodity Exchange opened up 7.3% higher and is at 708 yuan ($111.10) a tonne, up 5.5%, at 0225 GMT, on track for its biggest daily increase since Nov. 25. The most-active May futures contract settled up 5.5% at 707.6.

The increase follows Indonesia’s announcement on Saturday banning coal exports in January because of worries that low supplies at its domestic power plants could lead to widespread blackouts. read more

China sourced 178 million tonnes of Indonesian coal, mostly thermal coal, in the first 11 months of 2021, accounting for more than 60% of its total coal imports, customs data showed.

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  1. Good grief. A government making decisions in support of the people who live in the country. I can’t imagine an Australian government making such a decision.