Major Institutional Investors Ask Glencore to Justify Thermal...

Major Institutional Investors Ask Glencore to Justify Thermal Coal Development (insurancejournal.com)

There is some deluded virtue signalling going on among institutional investors. With these high coal prices and thawing of China-Australia coal import ban, should investors not be encouraging Glencore to produce more coal rather than cut back on production?

What kind of investor encourages the company they have invested in to cut back on production and profits, reducing their investment returns in the process? I suppose it is easy to do since institutional investors are playing with their clients' money rather than their own, so they can afford to lose it.

If they succeed, lower coal volumes will make our coal all the more valuable and sought after. Crazy world!

Climate change and coal: Phase out under way as temperatures rise (brisbanetimes.com.au)

"And despite that war-related jump, the global seaborne coal trade in 2022 is likely to have been between 5 and 8 per cent below pre-pandemic levels."

If seaborne coal has been below pre pandemic volumes and has pushed coal prices to these highs, I am eager to see what it will do to prices when China resumes imports and seaborne demand increases proportionally. Although overall coal consumption has increased, it suggests there has been more domestic mining to fill the seaborne shortfall. Demand is still rising however, with local supply unable to fill demand and there is no sign that seaborne coal is dead in the water.

Any increase in domestic coal prices should all be fully subsidised by the government, and the government should equally distribute these costs in full among climate activists and activist shareholders responsible for cornering the industry by disrupting supply and sabotaging new investment and projects through malicious legal avenues and direct physical obstruction. Paid either directly or enforced over the lifetime of each participating activist or economic terrorist, whichever descriptor is more applicable.

Oil and thermal coal prices forecast to climb in 2023 – UBS (*.com)

Not sure if USB has factored into its prediction Chinas easing of import bans and continuous ESG pressure on existing and future supply.

China Buyers Face Race to Snap Up Australia Coal, Shipper Says - BNN Bloomberg

Spot supply looks to be minimal. Contractual supply to be the bread winner on the demand side. This seems to be reflected in high spot prices supported by strong 25%+ backwardation on 1 year futures contracts.