Coal exports climb as delays take rain check

Coal shipments from Australia, the world's second-biggest exporter of the fuel, rose in April as key mining regions in the country's east recovered from torrential rains that earlier this year disrupted some mining operations and damaged infrastructure, according to The Australian.

Exports from major Australian coal terminals increased 5% during the month to 27.55 million tonnes, from about 26.24 million tonnes in March.

Gold, gas, iron ore spur commodity price plunge

A national index of commodity prices experienced its biggest plunge in seven months in May, unwinding much of this year’s gains and adding to headwinds confronting the resources sector, according to the Australian Financial Review.

The Reserve Bank of Australia’s preliminary commodity price gauge dropped 2.6% when measured against a basket of major currencies, after slipping 0.9% in April.

Much of the decline was caused by weaker prices for gold, coal and iron ore, which has tumbled to about $US110 a tonne from above $150 in February.

However, in terms of the Australian dollar, which rose more than 5% last month, the index actually rose 1.7%.

Analysts tip iron ore prices to fall further

The price of iron ore will fall in the next few months, as China’s economy winds back demand for the steel-making commodity, say analysts, according to the Australian Financial Review.

Spot iron ore prices fell about 10% last week to $US110.40 a tonne – the biggest weekly drop since October, 2011. The price slumped 18% in May and 30% since its peak in February, according to The Steel Index.

But analysts predict prices to bounce back later this year as China shifts from destocking in the second quarter to restocking in the second half. This is expected to be enough to ensure the market remains relatively tight despite an increase in supply.