Commodities

9

China “avoiding” Aussie coal

Via Credit Suisse: The price of Australian thermal coal sold to China (5500kcal high-ash) is being hit relative to competitors, at odds with assurances by the Chinese and Australian Governments that there is no ban on Australian coal at China ports. Whether there is a ban or just restrictions, the price suggests importers are not

0

Daily iron ore price update (more mud)

Iron ore prices for March 14, 2019:   Spot still range trading. We still don’t know where it is going. Same for the broader ferrous complex. Yesterday’s Chines data suggested that a headwind is still developing in real estate with sales still falling year on year and starts beginning to catch down: That is, despite

2

Daily iron ore price update (Mr Russell)

Iron ore price charts for March 12, 2019: Spot bounced. Paper firmed. Steel jumped. There’s still no clarity here, a point made nicely by Clyde Russell: The first fact worth noting is that China, which produces just over half of the world’s steel, hasn’t really slowed output of the metal much, despite considerable media reporting of

0

Gas cartel pumps more hot air

Via the AFR: Historical prices for gas would not even cover the cost of production now, said Johanna Boothey, commercial head of ExxonMobil Australia, which spent $120 million on a fruitless two-well search for new gas in the Bass Strait last year and recently completed a $5.5 billion investment in a new gas development. …Cooper

4

Daily iron ore price update (Vale fog)

Iron ore prices for March 5, 2019: Spot defied paper falls. Steel fell. Coking coal is stable. Platts describes the fog surrounding Vale today: The iron ore market could lose as much as 90 million mt/year of supplies from Brazil — about a quarter of the country’s total export capacity — from output curbs following

12

“Coal to Newcastle”. Aussie LNG import madness exposed

Via Reuters: Five LNG import projects are vying to start up between 2021 and 2022, possibly forcing gas users in New South Wales, South Australia, Tasmania and Victoria into more direct competition with Asian buyers for gas from northern Australia. Those states represent a yearly market of 420 petajoules (PJ), equivalent to 7.8 million tonnes

12

Bitcoin’s dead cat bounce hates weekends

by Chris Becker The cryptocurrency we love to hate is having a tough Monday morning with another weekend gapdown, falling to just above the $3800USD level: A lot of fingers burned from the recent uptick, with a big uptick of new entrants into the “scheme” as $15billion in market value was wiped off this morning.

67

Australian dollar hammered as China bans Aussie coal

Well, don’t say we didn’t warn you. Via Reuters: Customs at China’s northern Dalian port has banned imports of Australian coal and will cap overall coal imports for 2019 through its harbours at 12 million tonnes, an official at Dalian Port Group told Reuters on Thursday. The indefinite ban on imports from top supplier Australia,

3

Daily iron ore price update (Vale’s agony)

Iron ore prices for February 18, 2019: Spot and paper up. Steel down. Ferrous and steel markets are headed in opposite directions. This is unsustainable as Chinese steel mill profits collapse. Normally, bulks would getting caned right about now but the artificial prop is Vale, via AFR: Brazil’s government on Monday banned new upstream mining

0

Daily iron ore price update (bust)

Iron ore prices for February 12, 2019: Spot is tumbling. Paper fell further overnight. The panic is ebbing. Clyde Russell has a nice little piece on where we’re headed: Firstly, Chinese steel mills can substitute higher-quality iron ore with lower grades, which are likely to be more readily available, but this will result in lower

2

UBS: Vale’s iron ore problems deepen

Via UBS today: Court orders closure 30mtpa Brucutu mine; this was not expected by Vale Yesterday a Brazilian court ordered Vale to halt activity at 8 tailings dams, including 3 built using the “upstream” method & 5 “downstream” dams ( news); as a result of this Vale has stopped production at its 30mtpa Brucutu mine

3

Another US LNG monster goes ahead

Via CNBC: Exxon Mobil and Qatar Petroleum on Tuesday announced a final decision to finance a $10 billion-plus project to export liquefied natural gas from the Texas Gulf Coast. The decision moves forward the latest export terminal fueling growing shipments of U.S. LNG, or natural gas cooled to liquid form, for overseas travel. The Department

3

Labor delays LNG import rort

Thank goodness, via the AFR: Credit Suisse energy analyst Saul Kavonic said that despite the crowd of proposals, none may get a green light this year. “I remain sceptical of an LNG import terminal achieving FID [final investment decision] this year due to poor appetite by industrial buyers, social licence challenges, and the risk posed