Met Producer Share Price Action
In terms of metallurgical coal equity share price action, it has been pretty exciting to say the least as they’ve rallied.
In terms of metallurgical coal equity share price action, it has been pretty exciting to say the least as they’ve rallied.
Why is met rallying? Supply has become incrementally tighter and demand coming out of the summer doldrums is picking up again.
US domestic met coal market is currently facing several challenges, with the UAW strike looming on the horizon.
Lets go through BHP’s Economic and Commodity Outlook, pull out/summarize the important highlights and provide my thoughts on various topics.
July’s high summer temperatures and heatwaves in many parts of the country led to increased thermal coal burn.
I had lunch with a met producer sales guy yesterday and while discussing the upcoming domestic sales negotiating season, he mentioned that met buyers (North American end-users) seemingly “have all the power.”
With Australian PLV trading at a premium to CFR China, the arbitrage for Australian coal into China remains firmly closed.
Market Updates: Steel sector has moved past the hype-cycle of a Chinese reopen boom and is settling into a new reality.
Construction weakness & seasonal influences in China & overcapacity of steel production and oversupply of finished steel the country.