CHART: Coking coal prices are going ballistic, jumping over 300% in a year

CHART: Coking coal prices are going ballistic, jumping over 300% in a year


DAVID SCUTT
NOV 11, 2016, 10:31 AM

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http://edge.alluremedia.com.au/uploads/*/2015/04/FMG.jpgPhoto: Getty Images
In October we described the surge in coking coal prices as the rally that keeps on keeping on.
Perhaps that even undersells the moves seen since as it continues to rocket higher, surpassing the $US300 a tonne level overnight.
The spot price for premium hard coking coal has now risen 42% in the past month, extending the gains from the lows seen late last year to well over 300%.
This chart from the Commonwealth Bank puts the move in recent months into perspective. 4, 3, 2, 1. Lift-off…
http://edge.alluremedia.com.au/uploads/*/2016/11/coking-coal-300.jpg
Vivek Dhar, a mining and energy analyst at CBA, says the latest run higher has been as a result of “heightening deficit concerns”.
Coking coal inventories at major steel mills in China fell to just nine days of supply earlier this month, the lowest level on record.
Supply disruptions in seaborne markets and transportation links within China, along with the decision from Chinese policymakers to curb coal production earlier this year to reduce non-economic supply, have all contributed to the enormous move seen over the past 12 months.
It truly is amazing and, along with a renewed rally in thermal coal and iron ore prices over the same period, it bodes well for Australia’s terms of trade, along with government revenues and the profitability of Australian miners.
Coking and thermal coal, along with iron ore, are Australia’s largest goods exports by dollar value, accounting for 26.5% of all exports, including services.
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http://www.*.com.au/chart-coking-coal-prices-are-going-ballistic-jumping-over-300-in-a-year-2016-11