"Nothing to do with thermal - other than mad punters jumping at rumours they don't understand"
What a load of s**t and BS comment. Seems like only you understand, yet you can't reply to a post I tagged you on. These big companies on the ASX are controlled by algorithms/bots controlled by institutions based on a number of factors. The odd trader/investor is lost in the sea of buying and selling. The bounce yesterday could well have been an intra day short squeeze. It went down as hard as it went up.
The Dalian Commodity exchange doesn't really have anything to do with coking coal futures for Australian miners. It's more for their domestic end users in China that it affects.
The coking coal rally on the Dalian Exchange has not been replicated on the SGX.
In my opinion, coking coal will go into oversupply worldwide. The US is expanding production amid the uncertainty of thermal coal's future.
China's economic growth has waned recently and it is expected again this year. Which could mean that government will introduce stimuli (very very soon) that would include the use of the lowest and dirtiest form of electricity generation for round the clock power availability. China cannot rely on hydro, wind energy, nuclear and solar for electricity. It's unstable electricity generation. They still have over 60% of electricity generated by thermal coal.
The housing sector is in disarray so the short term demand for coking coal in China is debatable. But energy needs for the foreseeable future will be with coal regardless of all the noise. It will be bumpy on ASX stocks but that is the nature of cyclical stocks.
NHC Price at posting:
$4.48 Sentiment: None Disclosure: Not Held
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