Commodity Market Report
Global metallurgical coal short-term outlook June 2020: Markets remained dormant in June but expect price improvement during H2
Report summary
Metallurgical coal remained calm in June, but with changes on the horizon, we expect price growth in H2 2020. Chinese steel demand is slowing but should turn with stimulus programs. Indian steel demand is improving, but the monsoon season is just now underway to put on a temporary damper. Global coal supply is plentiful so some cutbacks are expected. China should continue to need strong coking coals and India buying will pick up post monsoon, supporting prices.
Table of contents
- Australian low-volatile spot prices dip gently
- Supplies of Australian premium mid-volatile tighten
- Chinese import quotas loom over H2, demand for high-quality coals should override
- PCI prices gain ground, but still dismal
- Semi-soft coking coal prices also staying low
- US mines continue to struggle as the high-cost supplier
- India should provide some price support in H2
- China’s demand should improve in H2
- Global GDP possible outcomes
- Outlook for the remainder of the year is still positive for met coal
- Australian May exports up slightly over April figures, but still low
- Anglo American restarts Moranbah North, but still on hold at Grosvenor
- South32 restarts second longwall at Appin
- Poland cuts coal output in face of large virus outbreak
- Russia’s Elga mine gets new ownership and plans for expansion
- Kolmar is expanding capacity at Inaglinsky
- US metallurgical coal exports fall substantially in April
- Czech company Sev.en Energy buys US metallurgical coal mines
- Cliffs closes captive low-volatile mine in Pennsylvania .
- Contura concentrates on metallurgical coal
- China looks to boost economy with infrastructure spend
- India demand moves upwards slowly from the lows in April
- Mixed messages on Brazil, as the virus situation is increasingly worse
Tables and charts
This report includes 6 images and tables including:
- Key prices - history & quarterly forecasts (US$/t nominal)
- Queensland ports: metallurgical exports (Mt)
- Global and Chinese crude steel production (Mt)
- Crude steel production – Ex-China producers (Mt)
- Global and Chinese blast furnace hot metal production (Mt)
- Blast furnace hot metal production – Ex-China producers (Mt)
What's included
This report contains:
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