Insight
Coronavirus locks down global bulks sector
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Over 200 countries are now dealing with the spread of Covid-19. Having ignited in Asia, the virus is raging through the US and much of Europe. India has joined other nations in trying to douse the flames early to maintain some control, and in doing so has thrown the bulks sector into turmoil. The scale and scope of regional and national lock downs is generating unprecedented supply and demand swings. In this insight we try to make some sense of the weeks events, and identify likely impacts on the global bulks sector outside China.
Table of contents
- Cost support shifts downward
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Steel and iron ore
- India: integrated steel mill utilisation rates likely at 25-35% during lock down
- Iron ore supply is less affected than demand
- Iron ore prices continue to hold up for now
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Metallurgical coal
- India: Metallurgical coal ‘critical’ but imports already slowing
- North American supply cuts have dominated this week
- Potential for large-scale supply shock remains
- Price falls accelerate
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Thermal Coal
- Supply cuts support prices while demand plummets
Tables and charts
This report includes the following images and tables:
- Bulks cost versus price
- Power demand change y-o-y: Week Ending 3rd Apr
What's included
This report contains:
