Standard & Poor’s Affirm Australia’s AAA Rating with a Stable Outlook.

The ratings agency S&P Global Ratings reaffirmed its AAA long-term sovereign credit rating and A-1+ short-term rating for Australia. S&P issued a note saying Australia should avoid a recession amid record low unemployment and elevated commodity prices, even as the economy slows this year amid higher interest rates. The RBA is expected to announce another 25 basis point increase in the official cash rate after its board meeting next Tuesday. S&P said Australia’s ratings were supported by “strong institutions, which … Continue reading “Standard & Poor’s Affirm Australia’s AAA Rating with a Stable Outlook.”

Resilient Australian Stock Market Outperformed in 2022, Supported by Mining and Energy Stocks

Australia’s blue-chip stock index, S&P/ASX 200 ended down 5.45% to 7,038.7 in 2022. On the last day of the trading year the ASX was up +0.3% and -0.9% for the week. This compares to 2021 being up over 13% for the year. Australian shares ended 2022 as one of the region’s more resilient markets with mining firms supporting as globally stocks were pummeled. The end to an era of low interest rates that made borrowing cheap and encouraged investors to … Continue reading “Resilient Australian Stock Market Outperformed in 2022, Supported by Mining and Energy Stocks”

Energy and Fertilizer Prices Key Risk to Food Prices

Energy is a key pricing determinant of many components for human sustenance and existence. Food prices, both directly and indirectly are impacted significantly by energy prices. While media and politicians in the west tend to focus on energy for comfort pricing; driving, heating and cooling it impacts the most basic of necessities, food dramatically. This is risk heavily weighted towards the financially imperiled countries, the surging US dollar in 2022 highlighted this. Food prices have eased but are expected to … Continue reading “Energy and Fertilizer Prices Key Risk to Food Prices”

European Coal Prices Hit Record High

With the deepening of the energy crisis in the wake of the news from Gazprom that the Nord Stream 1 pipeline will remain closed until the West lifted sanctions by order of Vladimar Putin energy prices continue to spike higher. Europe’s benchmark coal price rose 7.6% to a record $345/ton, about three times the price of a year ago. Year-ahead futures for delivery to the Amsterdam, Rotterdam, and Antwerp region rose after Europe revived dormant coal power plants to save … Continue reading “European Coal Prices Hit Record High”

China to Boost Domestic Coal Production to Ensure Energy Security

China, the world’s largest coal consumer and producer, announced that it would boost domestic production to ensure its energy security. Newcastle thermal coal futures fell more than $US70 a tonne to $US335 a tonne on Friday night for the October ICE contract. China has been hard by its ill-thought-out trade war with Australia which put them behind the queue as record prices for top quality Australian hard coking coal were set regularly in June the price hit $US430 (AUD$595) a … Continue reading “China to Boost Domestic Coal Production to Ensure Energy Security”

Coal Consumption Rebounded to Near Record Highs as Primary Energy Consumption Soared in 2021

With the global economy recovering from the COVID economic shutdown energy was being consumed at record levels BP’s statistical review of world energy showed. Primary energy consumption reached an all-time high, with emerging economies accounting for most of the increase. With the failed transition policies which halted fossil fuel exploration and growth coal consumption rebounded sharply and was very close to its all-time high of 2013. This led to an explosion in energy prices around the world with coal and natural … Continue reading “Coal Consumption Rebounded to Near Record Highs as Primary Energy Consumption Soared in 2021”

US Share of Electricity Generation from Coal to Decline Further Despite Soaring Natural Gas Prices EIA Forecasts

The EIA in their June STEO expect the continued retirement of coal-fired generating capacity in the United States to see the share of electricity generation from coal to decline from 23% in 2021 to 21% in 2022 and to 20% in 2023. Despite surging natural gas prices constraints include limited rail capacity for fuel delivery, low coal stocks at power plants, reduced coal mining capacity, and rising generation from renewable sources. Coal prices have risen unabated with supply chain disruptions globally.   The EIA … Continue reading “US Share of Electricity Generation from Coal to Decline Further Despite Soaring Natural Gas Prices EIA Forecasts”

Australian Coking Coal Record High with Strong Demand in Korea and Japan

Record prices for top quality Australian hard coking coal were set three times in the past week. The price hit $US430 ($595) a tonne Wednesday, almost four times the price in May. Coal prices have risen unabated with supply chain disruptions. Strong demand in Korea and Japan has fueled the rally over the past seven weeks. The prices were already pressured with Indonesia’s decision to ban coal exports. Further pressure on coal prices came from BHP, the world’s biggest coking … Continue reading “Australian Coking Coal Record High with Strong Demand in Korea and Japan”

Fitch Expects Asia LNG, US Henry Hub Natural Gas, Tin and Lithium to Average Higher in 2022

Fitch Solutions In its latest industry report expects Asia LNG, US Henry Hub natural gas, tin and lithium to average higher in 2022. Fitch expects most other global commodity prices to pull back in 2022 from current levels. Fitch Solutions expects strong prices in 2021 to incentivize production in 2022, in particular in agriculture. The energy crisis in Asia and Europe and the shift towards Electric vehicles puts a bid on related commodities for the most part. Fitch Solutions said developing … Continue reading “Fitch Expects Asia LNG, US Henry Hub Natural Gas, Tin and Lithium to Average Higher in 2022”

Record High Chinese Coal Futures Prices After Biggest Coal Producing Region Floods

Coal prices have risen unabated with supply chain disruptions, China has been particularly badly hit and that just got more critical. Floods closed 60 of the 682 coal mines in Shanxi province, 30% of China’s production.   Torrential rains has led to flooding and expanded mine shutdowns in China’s biggest coal producing region, Shanxi province. In a market already squeezing higher this latest news sent Thermal coal futures to a new intraday record after trading opened Monday. Beijing is ina … Continue reading “Record High Chinese Coal Futures Prices After Biggest Coal Producing Region Floods”