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Coking coal prices have soared 15 per cent to an 11-week high after former Cyclone Debbie tore through the Queensland coalfields. Queensland produces more than 50 per cent of the world's seaborne coking coal

 

Spot markets for the bulk commodity rose from $US152.30 per tonne to $US175.70 per tonne on Tuesday morning, as steelmakers scrambled to buy cargoes ahead of an expected shortage.

 

UBS believes the biggest winners from the coal price shortage and associated price rally will be miners with coking coal assets in other jurisdictions, like South32 and Whitehaven which mine in New South Wales.

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Whitehaven shares closed the day at $3.27 for a rise of 5.4% - at one stage they peaked at $3.44, up more than 10%. Whitehaven shares are up nearly 19% in the past week.

 

Coking coal prices have soared 15% to an 11-week high after former Cyclone Debbie tore through the Queensland coalfields.

 

Spot markets for the high quality metallurgical coal rose from $US152.30 per tonne to $US175.70 per tonne overnight, as steelmakers scrambled to buy cargoes ahead of an expected shortage

 

Thermal coal prices also jumped - up 6.4% to $US89.50.

 

Queensland produces more than half the worldÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s seaborne coking coal and the rail line that carried around half of QueenslandÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s exports - from the Goonyella region of the Bowen Basin (operated by Aurizon) - could be out of operation for up to five weeks while repairs are carried out.

 

With holidays in China on Monday and yesterday, Chinese steel mills got caught short by the impact of Debbie and have rushed to buy spot cargoes from the US (at higher prices and higher shipping costs). Canadian shippers such as Teck Resources could also get a temporary fillip.

 

Aurizon shares dipped another 6 cents to $5.13.

 

Three other railways that carry Queensland coal are also out of action at the moment, but should be repaired faster than the Goonyella line. the line to Mrisbane from the small West Moreton field is back in action, while mines and the port of Newcastle, the worldÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s largest, have not been impacted.

 

Miners like BHP Billiton, Rio Tinto, Anglo American, Glencore, Stanmore Coal and Wesfarmers are likely to see exports interrupted. Most mines will be back in operation by this weekend.

 

South 32 shares rose more than 2% to $2.86 in Australia and rose again in London overnight. But the current surge in prices wonÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢t last - when the the rail and port operations are fixed up, they will fall.

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so the recover speed is faster than market anticipated , then we should see coal price back down sooner?? :unsure:

 

 

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  • 1 month later...

India cancelling power station

 

http://www.independent.co.uk/news/world/as...t-a7741801.html

 

I hope our politicians understand the RISK associated with Adani project. I've never seen such a mob so rooted in the past and gunning for "last year's model" of big ticket items with limited net benefit, because you can be sure the Adani people are quite happy to lock in profits and socialise the potential downside. ..... which is becoming more real every day.

 

It's interesting how much grassroots opposition there is to Adani, which is fine, except most are the usual Rent-A-Crowd that seem to oppose everything, then go home to nice heated homes

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Trade battle looms as China curbs coal imports to help local miners

Sep 10 2017 at 3:04 PM

China has moved to restrict coal imports in an effort to provide further support to its local industry, a move sure to hurt Australian miners which have benefitted from big supply cuts on the mainland over the last year.

 

China's previously embattled coal sector returned to profitability over the last year, as the government limited working days for mines and shut down illegal and low grade production across the country.

 

An estimated 400 million tonnes of production has been taken out of the system in China, according to government figures.

 

The move has provided a huge boost to foreign producers like Australia's Whitehaven coal, which saw a 20-fold increase in net profit last financial year, while the coal division of Wesfarmers was the stand-out in an otherwise lacklustre result for the conglomerate.

 

Read more: http://www.afr.com/business/mining/coal/tr...20170910-gyedqo

 

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In bizarre twist, coal may become a scarce commodity: Russell

Reuters | about 16 hours ago

The current debate surrounding coal is generally one of how long it will continue to play a role in the world's energy mix before it is replaced by cleaner alternatives, mainly renewables such as wind and solar.

 

While various analysts will disagree on how quickly this process will occur, the reality is that coal, particularly in Asia, will remain a bedrock of energy supply for at least the next decade.

 

With the exception of India, most major coal importers in Asia have increased purchases this year, with top buyer China boosting imports by 13.7 percent in the first nine months of the year, compared to the same period in 2016.

 

This demand has boosted the Asian benchmark thermal coal price, the Newcastle index back to levels close to $100 a tonne, with the marker ending at $98.25 in the week ended Oct. 20, up 36 percent from the low so far this year of $72.42 in May.

 

In a normal market, the higher prices would result in supply rising to meet the extra demand, but the dynamics in thermal coal have altered.

 

There will be a supply shortfall of 22.7 million tonnes in 2017 in the global seaborne market, Rodrigo Echeverri, head of energy coal analysis at Noble Resources, told the World Coal Leaders conference this week in Barcelona.

 

Read more - http://www.mining.com/web/bizarre-twist-co...modity-russell/

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from The Age

 

A surge in Chinese coking coal futures has lit a fire underneath iron ore.

 

Coking coal futures surged more than 5 per cent on Thursday to their highest level since mid-September, supported by tighter supply amid Beijing's environmental clampdown.

 

Iron ore has been swept up in the jubilance, trading 4.3 per cent higher at $US65.17 a tonne.

 

China's overall coal imports dropped 21 per cent in October from the previous month as the government moves to replace coal with cleaner fuel in the northern part of the country to meet tough air quality targets.

 

Domestic coking coal supply remains under pressure because "there are a lot of interruptions with the government implementing stricter environmental rules this winter", said a Shanghai-based trader.

 

"Coking coal supply is still tight, that's why coking coal and coke prices are all rising," the trader said. Coke, used in steelmaking, is produced from coking coal.

 

The most-traded coking coal for January delivery on the Dalian Commodity Exchange rose as much as 5.5 per cent to 1,332 yuan ($US202) a tonne, its highest since September 15.

 

Resources stocks have mostly responded, though Fortescue Metals is only up 0.1 per cent to $4.70.

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China's steel, iron ore futures slide amid trade spat with U.S.

MANILA/BEIJING, June 19 (Reuters) - Prices of steel and its raw materials iron ore and coking coal fell sharply in China on Tuesday, with investor sentiment shaken by an intensifying trade spat between China and the United States.

 

The selloff in China also hit the stock market, with the key index falling below the key 3,000-mark for the first time in nearly 21 months, as well as other commodities including rubber, as investors returned from a public holiday on Monday.

https://in.reuters.com/article/asia-ironore...s-idINL4N1TL0TH

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Vale MozambiqueÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s debt reaches US$7.9 billion

The debts of mining company Vale MoÃÆâ€â„¢ÃƒÆ’ƒâ€Â ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒ¢Ã¢â‚¬Å¾Ã‚¢ÃƒÆ’ƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚§ambique reached US$7.9 billion in the second quarter of this year, the company announced at a press conference yesterday.

 

Vale MoÃÆâ€â„¢ÃƒÆ’ƒâ€Â ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒ¢Ã¢â‚¬Å¾Ã‚¢ÃƒÆ’ƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚§ambiqueÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s chief financial officer Marcelo Tertuliano said second-quarter debt had increased US$100 million over the first quarter figure.

 

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“Essentially, as a result of rising production costs, our debt now amounts to almost eight billion dollars,ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ said Tertuliano.

 

This is the accumulated debt of the Brazilian company, which began operations in MozambiqueÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s Tete province in 2005, including compensation to local relocated populations and the construction of transport links to the port of Nacala.

 

ValeÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s second quarter revenues were US$350 million, against US$337 million in the first quarter.

 

The increase in revenues was due to the increase in the volume of coal production at the Tete mine in central Mozambique, which reached 2.6 million tonnes in the second quarter against 2.3 million tonnes in the first quarter.

http://clubofmozambique.com/news/vale-moza...tform=hootsuite

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