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 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”
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”
What comes to mind with the current European energy crisis is the unexpected consequences of decision making without thought of possible headwinds. The current crisis has been borne out of what could best be described as ignorant energy and environmental policies. Putting the cart before the horse the issue with populist kneejerk policy.
US March CPI +2.6% annual inflation rate, slightly higher than expected +2.5%, up from 1.7% in February but the highest reading since August of 2018 with main upward pressure coming from energy +13.2% vs 3.7% in February including gasoline +22.5% vs 1.6% prior.
BHP continues to write down it’s fossil fuel assets cutting up to $1.6 billion from the value of its Mt Arthur thermal coal mine in the Hunter Valley. BHP sold its U.S. shale assets to Britain’s oil major BP for $10.5 billion in 2018 selling off “non-core and we are actively pursuing options to exit these assets for value”.
Australian mining giant BHP Billiton’s June quarter earnings saw huge leaps in revenue but lagged behind forecasts. $BLT announced a record dividend however cautioned on higher cost pressures and macroeconomic uncertainties.
The Reserve Bank of Australia (RBA) released preliminary estimates for February commodity prices showing the index rose 1.8 per cent (on a monthly average basis) in SDR terms, after increasing by 7.7 per cent in January (revised). Notables from the report were that Iron ore and coking coal led the increase. The rural subindex increased in the month, while the base metals subindex declined. In Australian dollar terms, the index increased by 3.8 per cent in February. Over the past … Continue reading “Iron Ore and Coking Coal Lead Commodity Prices Higher Says RBA”
Over the past few weeks we have seen aggressive buying and new highs in the metals, in particular base metals Zinc, Lead and Nickel. The bringing forward of China’s Xiongan New Area.