That sounds quite plain hector!
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That sounds quite plain hector!
Dear o dear..are Bathurst still around? As you will find in my posts back when they are in environment court for the escarpment project, I always thought they were in trouble...irrespective of coal prices dropping out, the economics of the project was less than robust. I don't hold and never have but hold 20+ mining stocks and watched this play out in court. It was not compelling and especially given the incredible ecology to New Zealand this company was prepared to destroy.
Absolutely not, this seemed unrelated to me (in fact I don't know if solid energy owned that land)... but potential cheap purchase of machinery could be an option (from Solid Energy), along side other "major opportunities"... the way the land purchase was annouced did not seem major to me
Up again today on modest volume interesting though...
Coking coal price shoot to a 20-months high
in Commodity News17/08/2016
Coking coal prices have hit a 20 months-high at USD121/mt on Tuesday, an increase of 5.7% at a level not seen since December 2014.
The spikes are linked to the demand push by Chinese and Indian buyers which prompted the price movement to rise by USD6.50/mt on a single day, 16 August 2016.
“The Chinese buyers are absorbing supply availability from the international markets with higher bids than those from India and Japan,” said a trade source.
The aggressive biddings are the by-product of the recent steel rally in China that drove up the demand of related commodities to steel manufacturing. Coking coal or metallurgical coal is one of the beneficiaries in the good steel run and the rapid drawdown has gradually caused supply tightness in the market.
According to a trade source, the market might face the possibilities of September cargoes being out of the stocks, while the supply tightness might spillover to the October cargoes.
Meanwhile in the second tier market, top quality coal cargoes were selling fast as end-users seek to fill up production needs. It was heard that mills based in China are having low inventory currently and will continue to procure more coking coal to fuel demand.
Going forward, coking coal prices may soar into further height depending on the continuation of steel rally and the extend of output cut enforced by the Chinese government.
Coke and sintering plants were particular in risk of temporary closure as the Chinese authority wished to improve air quality surrounding mills and establish a plan to reduce steel and coal outputs by 10% over the next few years.
Based on China’s National Development and Reform Commission (NDRC) report, the coal production cut was set at 500 million tonnes over a 3-5 years period. As of July 2016, the output cut was behind schedule with just 95 million tonnes or 38% of the intended 250 million tonnes production cut set for end of 2016.
In addition, the recent flooding in China has also spurred speculation on more steel demand for reconstruction which may prompt another uptick in coking coal prices.
Source: FreightInvestorServices
Maybe this report will give BRL holders some comfort.
Disc. not holding
Coking coal up 80% in 6months
http://www.mining.com/coking-coal-pr...in-six-months/