Email of the day (1)
Comment of the Day

July 09 2010

Commentary by Eoin Treacy

Email of the day (1)

on the difference between coking and steam coal prices
"In the chart library, you have a coal price chart. Can I suggest (without trying to analyse this chart) that this is possibly very misleading because there are really 2 very different markets here. Coking coal (very much linked to the steel industry) and steaming coal (used for power generation). These 2 markets have very different prices. Could I therefore please request, replacement of the coal price chart with a steaming coal price chart and a coking coal price chart? This would be much more useful."

Eoin Treacy's view Thank you for this informative email. I have amended the title of the Coal Future to Coal (Steaming) in order to illustrate which market it is referring to. I have also added McCloskey/Xinhua Infolink prices for coking and steaming coal. These are quoted in Yuan per tonne and update monthly. As you correctly point out the two price charts illustrate the considerable divergence between the fundamentals of the two markets.

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