Chinese demand adds support to thermal coal price: ANZ

CHINESE coal producers had been heavily discounting in August to acquire market share from smaller, high-cost producers, but the trend has reversed recently, adding support to seaborne thermal coal prices, says the ANZ Bank.
Chinese demand adds support to thermal coal price: ANZ Chinese demand adds support to thermal coal price: ANZ Chinese demand adds support to thermal coal price: ANZ Chinese demand adds support to thermal coal price: ANZ Chinese demand adds support to thermal coal price: ANZ

 

Lou Caruana

Thermal coal is now sitting at $US83.40 ($A88.20) per tonne, a 0.1% daily increase.

“Seaborne thermal coal prices were broadly unchanged while key Chinese producers, including Shenhua, raised their product prices again,” ANZ said.

The outlook for coking coal used in steel-making is also looking more promising.

“After China’s return from Golden Week, domestic steel rebar and landed iron ore prices have been steady,” ANZ said.

“Looking forward, we expect limited downside for steel rebar, as inventories remain on the decline despite record levels of production, indicating end-user demand remains healthy.”

Coking coal prices were steady at $US149/t ($A157/t).

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