SIGN UP

COMPANY INFORMATION
Company Name*
Website
Email ID
Phone
Company Address*
Company State*
Company City*
Pin Code*
 I agree to the Terms and Conditions.
captcha image
< BACK       

Newcastle coal resumes slide amid rising trade tensions

Share:            
news
Source: Montel, May 10, 2019

The Pacific basin’s benchmark thermal coal price has slid 2% on the week as rising trade tensions overshadow growing Chinese import volumes.



Global Coal last assessed its Newcastle index at USD 84.71/t, down USD 2.66 on where it stood last Thursday. 



The reference price for high grade (6,000 kcal/kg) Australian coal deliveries to Asia remains 16% below where it began the year and around USD 7/t shy of a two-year low struck last month.



“We had a lot of bad news this week on trade,” said Rodrigo Echeverri, head of commodities research at Noble, highlighting China’s failing trade negotiations with the US.



President Donald Trump has accused Beijing of breaking its end of a deal, escalating tensions ahead of a Friday deadline that could see the US double its tariffs on Chinese goods and China retaliate with countermeasures. 



The risk of a trade war was weighing on cargoes that may have to sell into markets potentially discounting heavily in two months’ time, Echeverri said. 



“The consequences could be enormous if a full-blown trade war erupts and it could hurt both sentiment and the real economy. The markets have perhaps not fully prepared for that worst scenario,” said CMC markets in a note. 



Wide spreads

In addition, a wide spread with European benchmark prices was luring Colombian and Russian exports into Asia, blunting the impact of relatively tight Australian supplies of high calorific coal. 



Newcastle’s premium to the European benchmark has retreated from its highest levels in at least six years, though at around USD 25/t remains high by historical standards. 



“The market is that far apart you will get cargoes draining from the Atlantic into the Pacific,” said Echeverri, pointing to empty coal vessel queues in Colombia in particular. 



Newcastle coal stocks rose by 310,000 tonnes to reach 1.5m tonnes in the week through 5 May, according to port data. There were two vessels waiting to take delivery, down from four last week.  



Solid imports

Yet recent data showed Chinese coal demand has so far proved relatively resilient – despite trade tensions and government efforts to cap imports at last year’s levels.  



The world’s biggest coal consumer posted a 14% rise in coal imports in April, bringing year-to-date imports back in line with an expansion.



“Power plants likely stockpiled thermal coal ahead of seasonally stronger demand in the summer months,” said Commonwealth Bank commodities analyst Vivek Dhar. 



“It is worth noting that China’s coal imports are up around 1.7% in the first four months of the year, despite reports that China is targeting flat coal import growth this year.”



China’s “surprisingly strong” commodities imports in April suggested the country’s domestic economy was responding to recent stimulus measures, according to ANZ bank.



Coal prices on China’s Zhengzhou exchange fell 2% on the week to CNY 600.60/t (USD 88.27/t).

News Source: Montel

Vietnam boosts Russian coal imports

Adani refuses to commit to size of 'scaled-down' C...

Indonesia sets May HBA thermal coal price at $81.8...

Adani Expects India Coal Imports to Surge to a Rec...

Adani expects India's coal imports to surge to a r...

Poland to hold talks on Prairie Mining coal projec...

Adani's coal project in Australia may take off as...

BHP sees early end for thermal coal, plugs in to e...

Column: Adani's coal hopes look increasingly isola...

India’s SCCL developing greenfield underground coa...

Two reported Central Appalachia thermal coal deals...

Regulators set date for Adani mine approvals

India’s coal import rises 13% in April 2019

ICI 4 thermal coal derivatives prices hold steady

Indian govt projects sharp drop in thermal coal im...

Indian govt projects sharp drop in thermal coal im...

India to maintain its level of thermal coal import...

Destination of South32’s SA thermal coal assets ma...

China, India thermal coal imports hit multi-year h...

June ICI 4 coal contracts steady, physical trade m...

India to maintain its level of thermal coal import...

Germany’s interest in Russian coal rises

ICI 4 coal derivatives market begins to stabilise

Australia's standing in Pacific has plummeted beca...

Coal India to hire merchant bankers for acquiring...

UPDATE 1-China's May coal imports climb 8.6% from...

Polish coal unions to protest against planned dism...

China’s May coal imports climb 8.6% from month bef...

Vietnam's May coal imports rise 57% on year to 3.8...

Column: Coal price slump in Asia even as demand gr...

ICI 4 coal derivatives trade at higher price

Nippon Steel settles 2Q semi-soft coking coal at $...

Vietnam’s May coal imports rise 57% on year to 3.8...

China’s raw coal production up 3.5 pc in May

Myths and reality: Adani’s Australian coal mine to...

Coal producer Cambrian files for Ch. 11 as thermal...

China's benchmark power coal price remains flat

Bumi Resources expects to sell 42 million tons of...

China's Fuzhou port tightens coal import restricti...

China's import thermal coal market remains tense f...

China's May thermal coal import rises 35% on year...

Coal market faces 25mt overhang in 2019 – analyst

Noble Group sees lower coal prices for next few ye...

April-May thermal coal volumes at key Indian ports...

Canada, US gain as India cuts dependence on Austra...

April-May thermal coal volumes at key Indian ports...

Platts to launch European Blended Price thermal co...

Asia’s coal developers feeling left out by cold sh...

Japanese thermal coal buyers try out Newcastle HA...

Tighter Chinese coal import controls add to Guangx...

Built for a boom, Glencore gets banged up

Downside risk remains for coal in July amid oversu...

Australia sees gold overtaking thermal coal as exp...

Aussie trade surplus hits record $5.7bn

US May coal exports total 8.24 million mt, down 5....

Chinese thermal coal demand to fall with launch of...

Indonesia sets Jul HBA thermal coal price at $71.9...

Thailand boosts imports of Russian coal

Russia-Ukraine conflict sees coal deliveries drop...

Chinese thermal coal demand to fall with launch of...

China Learns an Iron Law of Markets

Questions raised after Australia coal mine deaths

BHP Is Latest Giant Miner to Plan Exit From Therma...

Colombian May thermal coal exports up 32.3%: DANE

BHP Is Latest Giant Miner to Plan Exit From Therma...

King coal rules in Japan as power utilities in thr...

Prices rise slightly for 3Q ICI 4 coal derivatives

China’s Australian coking coal imports double in M...

Newcastle coal edges lower amid softening demand

June ICI 4 coal derivatives clear at softer price

China's port controls for Australian thermal coal...

China imports of US coking coal rise five-fold in...

Newcastle coal slumps to 2-year low as trade jitte...

Indonesian physical coal prices hold steady

Newcastle coal slips to 3-year low

Wallarah 2 thermal coal project takes leap forward...

Indonesian physical coal prices hold steady

Lower for longer: Supply glut in focus as Asia’s b...

ICI 4 coal derivatives trade picks up

Newcastle coal prices hover near 3-year lows

China Coal Imports Seen Cooling Once Beijing Reins...

Australia coal exports to Europe rise in May

Analysts revise 2019 coal price outlook down nearl...

Low-CV Indonesian coal prices steady to softer

Australian Thermal Coal Leaves Investors Cold

Share: