Commodities

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Daily iron ore price update (traction)

Iron ore price charts for September 25, 2017: Tianjin benchmark rose 50 cents to $63.40. Paper lifted a little overnight. Coking coal futures too. I’ve swapped from rebar average to futures which report more reliably. They are off a little. Reuters has texture: China’s steel raw materials extended recent losses on Monday, with coking coal down

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ACCC to fix wholesale gas prices?

After completing stuffing its regulatory response to the gas market for several years, by resisting reservation and allowing reserves to consolidate in a blood-thirsty cartel, the ACCC seems finally to be getting ahead of things: The national competition watchdog has taken the extraordinary step of releasing “appropriate benchmark prices” for natural gas on the east coast,

10

BHP sacks Minerals Council coal trog

The winds of change are upon us: BHP’s falling out with the Minerals Council of Australia has claimed the scalp of the lobby group’s chief executive, Brendan Pearson. …his advocacy for coal and opposition to the Finkel review’s Clean Energy Target left him and the MCA increasingly isolated from BHP, with the simmering tensions coming

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Daily iron ore price update (no fat lady)

Iron ore price charts for September 22, 2017: Tianjin benchmark fell 10 cents to $62.90. Paper is still burning. Steel yet to update. Coking coal was cooked. Texture from the AFR: China’s iron ore demand is expected to drop 7 per cent, as steel-making cities across northern China begin rolling out anti-pollution measures from next

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Will iron ore drag the Australian dollar lower?

No, says ANZ boldly, via BS: ANZ analysts Daniel Been and Giulia Lavinia Specchia said that the falls only present limited downside risk for the Aussie. For starters, they noted that the recent correlation between iron ore prices and the AUD/USD exchange rate is below it’s long-term average. In addition, “the low correlation between the

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Time to upgrade oil prices?

Morgan Stanley thinks so: Product markets are showing signs of outright tightness, particularly middle distillates. This is feeding into crude markets which are looking more balanced in 2018. We are raising oil price forecasts modestly. The real winners though are refiners, and we see value in margins and crack spreads. Strong demand is driving product

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Daily iron ore price update (smash)

Forgive the lack of charts today. I’m on the road. Tianjin benchmark was flushed 7.4% or $5 to $63. Qingdao spot got hammered 6% or $3.56 to $66.09. Dalian futures fell another 2.9% overnight to 472 yuan. Coking coal futures were monstered 4.1% to $186.60. SGX twelve month futures were pounded $2.94 to $55.31. Rebar

2

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

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Fortescue discounts rocket

Not news to MB readers but interesting texture via the AFR: But while Fortescue has historically received a discount of 10 to 15 per cent to the benchmark, in the 2017 financial year it achieved sales at a discount of 23 per cent. The gap widened to 27 per cent in the June quarter.According to pricing

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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

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Daily iron ore price update (splat)

Iron ore price charts for September 14, 2017: Tianjin benchmark fell 70 cents to $73.40. Paper was flogged into the close yesterday but recovered some ground overnight. Steel has not updated but futures fell. Yesterday’s China data showed clearly that demand is going to ease in the months ahead. But not crash. Floor area starts

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Daily iron ore price update (the turn)

Iron ore price charts for September 13, 2017: Tianjin benchmark was unchanged at $74.20. Paper fell overnight. Coking coal is madly inflated. Steel price to come. Via Platts: High iron ore prices this year have been a function of strong steel prices and any weakening in the latter will likely dampen the benchmark raw material,

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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

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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

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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

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China installs coal protections

Via the AFR: China has moved to restrict coal imports in an effort to provide further support to its local industry, a move sure to hurt Australian miners which have benefitted from big supply cuts on the mainland over the last year. The first sign of what is being described as an “unofficial” government policy

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Daily iron ore price update (toppy)

Iron ore price charts for September 8, 2017: Tianjin benchmark tumbled 3% to $73.70. Steel eased. Coking coal spot is still at an astonishing $209. Both paper and spot are starting to look a bit toppy here. Even the carnage in the USD failed to trigger any new bid. However, until steel weakens the jury