David Scutt
Aug 31, 2016, 5:17 PM http://edge.alluremedia.com.au/uploads/*/2016/03/air-show.jpgPhoto by Yuli Seperi/Getty Images
Coking coal prices are going vertical, continuing its enormous rally since May.
Nothing shows this better than the chart below from Metal Bulletin, posted on Twitter today. They say a picture speaks a thousand words, and this is no exception.
Yowsers! http://edge.alluremedia.com.au/uploads/*/2016/08/mb-cokin-coal-aug-31-2016.jpg
According to Metal Bulletin, the premium hard coking coal price (FOB, Australia) has jumped 41% in August to nearly $140 a tonne.
On Tuesday alone it added nearly 9%.
In a note released last week, Vivek Dhar, a mining and energy commodities analyst at the Commonwealth Bank, said prices were being driven by supply shortages in China.
“A coking coal shortage in China has emerged as highways in the coal-producing province of Shanxi were closed for repairs following heavy rainfall last month,” he wrote in a research note released on Friday.
“While transport conditions are reportedly improving, steel mills are still anxious to secure coking coal.”
Anxious they are, based on the chart above.
Also look out for the coal stocks please @pootietang1986@DoctorBrad@fishfordayz.. It sounds strange to me gold, coal, manganese, lithium, graphite, silver -- I suppose the ASX teaches you a lot of research
Looks like rally started in May also confirmed when I looked at CKA
