THERE AND BACK AGAIN – COKING COAL’S TUMBLE SHARPER THAN EXPECTED

At the time of our last update, in late November, it appeared that the huge rally in seaborne coking coal prices that began last July might finally have come to an end, after levels above $300/tonne FOB for the premium, hard coking coals, up from $90/tonne earlier in the summer, faced understandable resistance in Asian spot markets.

True enough, prices fell in December, in-line with our expectations but the continued and accelerating retreat in early January caught us somewhat by surprise. As the chart shows alongside, our benchmark Australian hard coking coal price had fallen by 36% during the eight weeks since our last update and to below $180/tonne FOB at the time of writing in mid- January.


The speed of correction has, however, stood out in the steelmaking raw materials...

Published

Alistair Ramsay

January 02, 2017

00:00 GMT