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”

Europe Energy Crisis Years in the Making With Reactionary Environmental policy

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.

Energy Prices Pressure US Consumer Inflation Rate To Over 2 Year High

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 Writes Down Australian Thermal Coal Mine $1.6 Billion

BHP continues to write down its 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”. BHP is Australia’s largest miner at it’s shareholders meeting it will writedown its Mt Arthur coal mine in the Hunter Valley … Continue reading “BHP Writes Down Australian Thermal Coal Mine $1.6 Billion”

BHP Huge Profit and Record Dividend But Warns on Higher Costs And Global Uncertainty

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.

Iron Ore and Coking Coal Lead Commodity Prices Higher Says RBA

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”

Commodities Get Boost From China’s Xiongan New Economic Zone

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.