Coking coal prices are heating up, boosted by another bout of fiscal stimulus in China along with a swathe of supply disruptions worldwide, spurring shortage concerns.
The spot price for premium coking coal has now rallied by over 60% since mid-February, with gains accelerating last week by the most since early 2011 when devastating floods hit parts of southeast Queensland, disrupting major supply chains.
The chart below from the Commonwealth Bank shows the spot and contract prices for premium coking coal from Queensland over the past two years.
It’s been a remarkable turnaround following years of constant price declines.
(sorry no chart but can google it)
OK this is about queensland, but many forget that the highest grade coking coal is found in the Illawarra… of which Wollongong Coal have a massive resource.
Have been negative before on WLC but now very bullish…sentiment changed to buy…...
WLC Price at posting:
1.0¢ Sentiment: Buy Disclosure: Held
