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In its latest mineral monitor report, the Canberra-based company said marked rises of late all came from bulk commodities.
“Iron ore, coking coal and steaming coal are going from strength to strength with monster rises in contract prices, with some spot prices spiking higher,” it said.
Access Economics said strong global demand had extended the life of what had already been a three year boom. “But the commodity cycle continues to look relatively mature – the supply cavalry is on the way, while global growth already appears to be easing.”
It said steaming coal was in high demand from China and Japan’s power plants, with some grades doubling in price.
Strong steel demand had pushed Japanese contract prices sky high to $US125 per tonne – a price Access said in real terms hadn’t been seen since the start of the 1980s.
“These prices for bulk commodities will obviously linger for a while yet. But supply responses are already underway, and ABARE expects (and we agree) that bulk contract prices will be falling again after 2005-06,” it said.
