Coking coal bounce continues

From ANZ:

Bulk commodities mostly rose, with spot iron ore price (up 0.7% to USD138.6/t) on Friday and coking coal prices up 1.6% to USD142/t for the week. Seaborne iron ore prices picked up as a tranche of fresh deals supported the market. Higher steel futures prices and falling steel inventories also boosted sentiment, as the most actively traded SHFE contract rose RMB26/t to RMB3,803/t and other period contracts also rose on Friday. Baltic Capesize freight rates also continued to rise, up 9.5% last week, driven by rising coking coal seaborne activity. In contrast, thermal coal markets could come under a bit of pressure, with falling Chinese domestic coal prices weighing on already bearish sentiment.

And the chart:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.