Steelmaking raw materials made strong gains on Monday as Chinese mills, responsible for half the world's steel output, restock ahead of the resumption of full production at the end of winter.
The Northern China import price of 62% Fe content ore jumped 5.2% to the highest since September trading at $74.40 per dry metric tonne according to data supplied by The Steel Index. Although down sharply from its 2017 high struck in February iron ore has averaged $70.60 since the start of the year compared to $56.50 over the course of 2016.
Steelmaking coal (premium hard-coking coal FOB Australia) was pegged at $243.90 a tonne up 1.4% compared to Friday, a near eight-month high. Coking coal has surged 37% in value since the beginning of November and is averaging $185.70 in 2017, a more than $40 gain compared to the average price last year.
On the Dalian Commodities Exchange, always volatile coking coal and iron ore futures enjoyed another day of wild swings with both commodities ending Monday at the upper limit of their allowed trading range. Iron ore futures added more than 7% to 536 yuan while coking coal surged 8% to 1,350 yuan.
Currently spot price is USD265 pmt - even at usd250 (~aud 325) this is better than last years average.
Wollongong Coal are currently cutting coal, having overcome their difficulties with Delta (subcontractors) last year, and have already stemmed 80,000 mt for export in January. a very nice little AUD $26M revenue kick off for 2018
WLC Price at posting:
0.6¢ Sentiment: Buy Disclosure: Held
