Commodities

1

China, India bash Aussie coal

Via Reuters: Australia’s share in India’s coking coal market fell to 71 per cent, or 36.91 million tonnes, during the year ended March 2019 from about 88 per cent three years ago, India coal ministry data reviewed by Reuters showed. The United States and Canada had a 5.6 per cent share of the market three

0

Daily iron ore price update (toppy)

Spot fell. Paper too. Steel is still being supported by Tangshan output curbs.  CISA steel output pulled back in late May. The charts: The last chart is more marginal evidence that steel mills have hit some kind of over-production tipping point. The pullback was coming via margins anyway but enforcement by regulators achieves the same

6

Is iron ore signal or bubble?

The FT has an interesting debate on it: The price of iron ore has surged 60 per cent to above $115 a tonne so far this year, according to S&P Global Platts…But it also runs the risk of attracting fresh supply and bringing this year’s rally to an abrupt end. “The market is telling us

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Daily iron ore price update (steel save)

Iron spot prices eased back. Paper fell harder. Steel jumped higher. Reuters explains: China’s top steel city of Tangshan has imposed a new set of output restrictions on its iron and steel firms because of persistently high industrial gas pollution levels, the local government-backed Tangshan Labour Daily reported on Monday. Two units of steel giant

2

Vale mulls S11D expansion

Via BNAmericas: Brazil’s supreme court of justice has authorized local miner Valeto resume operations at its largest iron ore asset in Minas Gerais state, the 30Mt/y Brucutu complex. In a release on Wednesday, Vale said that the decision will allow the full resumption of wet processing operations at Brucutu within 72 hours, thus increasing the average

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Daily iron ore price update (Dalian pin)

Spot eased. Paper was bashed Friday night. Steel is going nowhere, a standing warning for the bubble. The charts for June 14, 2019: Reuters has more: China’s Dalian Commodity Exchange said on Friday that it would raise trading limits and margins for the iron ore futures contract for September delivery , effective from June 18.

10

Adani to loose QLD coal tsunami?

Via the ABC: A decision on the Adani groundwater management plan is set down for tomorrow with environmentalists saying if the Queensland Government gives the green light it will set a precedent for six other mines also planned for the region and allow Adani to break ground within weeks. The Queensland Resources Council (QRC) said

9

Lunatic RBA: Resources to boom forever

Honestly, they never learn. This time from Alexandra Heath, Head of Economic Analysis at the world’s happiest central bank: Introduction Good morning and thank you to the AMEC for the invitation to be here today. The resource sector makes a significant contribution to the Australian economy. It accounts for about 20 per cent of business investment and almost 60 per cent

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Daily iron ore price update (seasons)

Iron roe prices for June 4, 2019: Spot up. Paper soft. Steel stable. Things have calmed down on demand fears but don’t forget seasonality. Chinese demand is weak through mid-year as summer rains crimp construction: If Brucutu does not return by July/August, and/or the trade war slowdown takes a breather, then it will be off

0

Daily iron ore price update (FT wrong)

Spot down. Paper was bashed lower by higher DCE trading fees. Steel is stable. The FT is wrong: Steelmakers are feeling the profit pinch. There are hints of overcapacity problems ahead for Chinese producers. There, the price of hot rolled coil, a widely traded steel commodity, remains down double digits year on year. …This year

4

Daily iron ore price update (to the moon)

Iron ore prices for May 27, 2019: Spot and paper to the moon. Steel not. Dalian is warning speculators but with Vale stating that it has another damn at imminent risk of collapse, you can hardly call the rally irrational. Upstream dams appear to be irrational at this point and, if so, the market might

2

Aussie LNG circus goes completely mad

It’s mad, via the AFR: Jee Yoon, founder and managing director of South Korea’s Energy Projects and Infrastructure Korea (EPIK), said he was fielding interest from LNG traders keen to use the Newcastle GasDock and was still targeting a final investment decision on the $US430 million ($620 million) project in early 2020. …Unlike the Port