“Coal could bounce, but it will need oil prices to hold,” ANZ said in its commodity report.
“Freight markets are showing mild signs of rebounding and Newcastle shipping stats look pretty encouraging – the shipping queue blowing out to 46 vessels (from 39 last week) and tonnes due for loading increasing 16 per cent to 3.65 million tonnes.”
The bank was also encouraged by reports that not many Capesize vessels are available for July loadings.
With South Africa’s Richards Bay lower than the Newcastle spot price by $US11.40 a tonne, ANZ mentioned reports that Taiwan has joined Indian traders in seeking South African thermal coal.
ANZ said the latest Japanese trade data revealed a 31% year-on-year drop in thermal coal imports, but the bulk of the decline would have been felt by Chinese exporters.
Asia-Pacific benchmark Singapore Tapis crude closed yesterday at $74.12 a barrel, not far off its 2009 high of $75.79/bbl.
The globalCOAL NEWC index ended Friday at $68.69/t, down 3.13% for the week.
