What’s keeping thermal coal aloft?

Via Macquarie: China’s domestic thermal coal price continued to rise into September in spite of slower demand from power plants. Spot prices for 5,500kcal coal in QHD are reported to be over Rmb670/t this week, up from Rmb 620/t in the end of August, and official quoted BSPI climbed from Rmb579/t to Rmb583/t over the


Daily iron ore price update (houses and holes)

Benchmark fell 30 cents to $68. Steel has not updated. Dalian is still falling. The FT has nice little wrap on things: “When profitability is really good, the marginal benefit from producing an additional tonne of steel is bigger,” says Macquarie analyst Serafino Capoferri. “So mills try to push as hard as they can on


Daily iron ore price update (waiting on steel)

Iron ore price charts for September 18, 2017:   Tianjin spot fell 10 cents to $70.80. Spot formed overnight. We’re still waiting for a break lower in steel, the one missing ingredient for a big correction. It will surely come, via Reuters: Beijing will suspend construction of major public projects in the city this winter


Daily iron ore price update (look out below)

Iron ore price charts for September 15, 2017: Tianjin spot slumped 3.4% to $70.90. Coking coal futures were eviscerated. Port iron ore stocks tumbled over 1.2mt to 132mt. The top is in here. Chinese data is softening. Credit is softening. Steel mills are going like the clappers to build stock before they’re shut-in for the


Enthusiasm for miners slides

Credit Suisse is pulling back: Still long commodity producers, but less so ■ Everything is awesome: All of the three main macro drivers of the commodity producers have been supportive. Chinese fiscal policy has been in expansion mode, Chinese money supply has been growing and the US Dollar has been depreciating. Since the recent lows


Slowly but surely, oil is rebalancing

Via Citi:  The market is still digesting the potential impact of Hurricane’s Harvey, Irma and Katia on oil balances but focus is likely to soon turn to the IEA’s September OMR that is published this Wednesday. The Paris-based agency’s August report caused a stir given the sizeable downward revisions to its headline oil demand


Daily iron ore price update (coking kiss)

Iron ore price charts for September 11, 2017: Tianjin benchmark ease 10 cents to $73.60. Paper took off overnight. Coking coal is wild. From Platts: China’s steel mills are opting to buy higher grade iron ore cargoes domestically and from the seaborne import market over readily-available mostly medium and lower grade port stocks as this


Big Sleazy catches a bid as Big Iron fails break out

Dalian is trying repair overnight damage today: Big Iron is down sharply. BHP and RIO failed at largish double tops, at least for now… Big Gas is soft but the pensioner abuse specialists continue their predictable but appalling re-rating: Big Gold is off sharply. I remain a seller short term: Big Sleazy has caught a


More Santos gas shifts to domestic markets

Via the AFR: Santos and Origin have inked a new deal to supply Chinese-controlled plastics maker Qenos with ethane until the end of 2019. Santos announced in November 2014 that it has signed a new five-year deal to supply ethane gas to Qenos in NSW. At the time, the deal was heralded as avoiding the potential loss of more


China moves to squash runaway coal

More excellent bulks material today from Macquarie: China commodities trip: Update on government policy and coal  Following yesterday’s note on steel, we summarise the main takeaways regarding government policy and the coal market from our recent trip to China. Coal miners around the world have benefited from the Chinese government’s “276 working days policy”


Big Sleazy breaks to new lows

Dalian is trying to rebound: BHP is still nudging breakout: Big Gas continues its re-rating with exporters down and the domestic gougers flying: All I can say to that is, what a pack of bloody idiots we are. Big Gold is powering, working beautifully as portfolio insurance. I’m still a seller here for the short


Daily iron ore price update (stall)

Iron ore price charts for September 5, 2017: Tianjin benchmark rose 30 cents to $77.50. Paper fell sharply overnight. Rebar is at new highs. Retuers has texture: China’s iron ore futures dropped on Tuesday for the first time in four sessions after a fire at a government-owned steel mill raised concerns that planned safety inspections may