CRB (Commodity Index) at highs not seen since Oct 2012. 

Copyright © 2011 Cliffs Natural Resources Inc

A Cliffs iron ore operation

Iron ore prices are +12% from mid-March, and we are hearing about copper demand channel checks showing much better tone than the headlines and spot price move indicate. 

Copper (JJC, quote) has bounced 4.5% off the key support and copper miners (COPX, quote) have been the trade vs gold miners for last month.

Teck Resources (TCK, quote) +15% since March lows in copper. I am also hearing that Indian coal importers are now starting to look at U.S. coal exports as spot coal is now cheap enough to import plus shipping costs.

We should start to see a floor under the better balance sheets in the coal space in names like Cliffs Natural Resources (CLF, quote) and Peabody Energy (BTU, quote).

 

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