Coronavirus impact on bulks - Fortnight ending 10th July

China’s steel stocks are rising from an already high base. However, market sentiment remains positive as steel prices are strengthening on expectations of robust H2 demand and the strong performance of the futures market. Iron ore prices continue to rise But is this the peak of the market? We think it is with Brazilian supply increasing, Australian shipments running very strong, and Chinese iron ore port stocks rising. Metallurgical coal prices stabilise as supply constraints offset lower demand. Thermal coal prices remain listless. However, resilient power demand and slowing Indonesian production will help to lift sentiment. Meanwhile, rising tension between China and the rest of the world presents an increasing risk for bulk commodity markets.