Global Commodities Daily ? Bulks ? Perfect Storm Brewing In Asia Pacific Coal Markets Global | Commodities Strategy
Wet weather has hit the coal market again, with Hunter Valley thermal coal mines struggling to overcome the latest deluge of rain during this wet season. At the same time, a strike in Queensland and higher royalties in Indonesia threaten to restrict even more supply in the Asia Pacific region. This is all coming at a time when Asian buyers look like picking up their buying activity. Platts reported a big off-screen trade of Newcastle coal by the Chinese this week while we are hearing TEPCO is stepping back into the market as its coal-fired power plants come back online. This should tighten the market in 3Q11, and push spot thermal coal prices back above $130/t.
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CCC Price at posting:
39.0¢ Sentiment: Hold Disclosure: Held
