Iron Ore (IO) has run from $86 per ton to $122 per ton with expectations that prices will hold at this elevated level. According senior resource analyst at Mine Life Pty in Sydney, Gavin Wendt told Bloomberg Network “Prices will stay about where they are now until 2013,”
Always remember that when people talk about coal, they really mean one of two very different commodities. There’s thermal coal, which is still in retreat as Australian mines recover from last year’s floods. And then there’s coal used in steel.
Tata Power has had enough. India’s largest power company is now shopping overseas for generation and distribution, because the Indian infrastructure prevents it from finding enough power at home.
China is hungry for coal, but growth has has been slowing down and prices are well below the government’s official price cap. It’s a trend that analysts at DBS Group Research say will continue for several months to come.
It may be the year of the Water Dragon, but the coal market is burning bright. That’s especially true in China, where even a scandal at Winsway Coking Coal Holdings seems unlikely to quench the flames.
The price of coking coal has fallen up to 20% for the January-March quarter according to Indian government officials, reversing last year’s extreme strength in this key steelmaking commodity.