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Metallurgical coal price spike: Will it last?
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Memories of the Queensland floods of 2010-11 have been rekindled the by the meteoric rise in metallurgical coal prices in August and September. Supply disruption due to Government policy, production mishaps and weather, have occurred in both China and Australia, whilst seasonal demand in China, and unexpected additional demand from India, have compounded the market tightness. Prices have spiked to around US$200/t in recent days. At such high prices the incentives are high for new supply, but production constraints, and reticence from some miners to re-enter the market after years of pain, will keep things tight in 2016.
Table of contents
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Introduction
- Coking coal and Iron Ore price trends Dec 2015 to Sept 2016 (index: 1st Dec = 1)
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Four reasons behind the massive price rises
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Chinese metallurgical coal supply is critically short
- Chinese metallurgical coal production 2015 and 2016
- Demand in China and India has spiked
- International suppliers have been unable to provide the additional coal
- Buyer and seller behaviour has been extreme
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Chinese metallurgical coal supply is critically short
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Will it last?
- HCC 2016 margins at US$200/t
- So what does this all mean for prices?
Tables and charts
This report includes the following images and tables:
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Metallurgical coal price spike: Will it last?: Image 1Metallurgical coal price spike: Will it last?: Image 3Metallurgical coal price spike: Will it last?: Image 2
What's included
This report contains:
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