Commodities

1

Coking coal up on the QLD floods

Courtesy of ANZ: April Newc coal prices rose USD1.50 to USD94.75/t, while spot coking coal traded at over USD167/t after flooding in Queensland’s coalfields. The Bowen Basin was hit by between 200 and 400 millimetres of rain, but the disruptions are not as widespread as the “Big Wet” of 2011. Even so it may take several weeks for operations to

2

BREE downgrades coking, thermal coal

Courtesy of ANZ: Thermal coal prices continued to decline, while iron ore and coking coal prices increased slightly. Some of the steam has been removed from bulk markets, as participants wait on the sidelines for announcements from China’s new government during the Central Economic Work Meetings. Iron ore and coking coal markets appear to be supported by reports that Baosteel will

2

BHP abandons Browse

From the AFR: BHP Billiton has exited the Woodside Petroleum-led Browse liquefied natural gas venture, inking an expensive $US1.63 billion deal to sell its stake to Chinese oil giant PetroChina and further shaking up the troubled venture. The deal is the third major overhaul in ownership stakes this year in Browse LNG, which is struggling

3

Daily iron ore price update (twirling, twirling, twirling towards freedom!)

Find above the iron ore price complex chart for December 11, 2012. Here is the ore chart: And steel chart: Pretty clearly, spot iron ore has broken free of fundamentals, associated prices and all sense, twirling, twirling, twirling towards freedom! My spread charts are now registering dangerous over-stretch for this price range. Swap versus spot: