Hope versus reality: Coronavirus impact on bulks week ended 8th May

Tentative plans to exit lock down and re-ignite brutalised economies are being hatched from the US to Europe, to the sub-continent and to Oceania. All eyes are trained on the impact on bulk commodities demand, in the hope a prolonged global recession can be avoided. On the ground, steel makers are being forced to lower production as the reality of weak Q3 demand begins to come into clearer focus. This week, iron ore and met coal ignored some of those signals, with prices rising as supply disruption came to the fore. Iron ore prices continue to gain support from Vale's lower-than-expected production. Meanwhile, a terrible accident at one of Australia's most productive underground mines, saw coking coal prices buck the strong downward trend of the previous fortnight. Thermal coal prices continued their descent deeper into the global cost curve, as energy demand outside China stays at multi-year lows.