Coking coal price close to $300 a tonne on Australian disruptions

By analyst By Cecilia Jamasmie Coking coal prices closed the week 86% higher, climbing 34% on Friday alone to $283.10 a tonne, after damage caused by a cyclone that struck Australia’s north-east coast in late March has put supply at risk. One of the largest disruption to Australia’s coking coal exports in six years has caused a record surge in prices. Major producers including BHP Billiton and Peabody Energy have declared force majeure after rail lines were closed due heavy rain and landslides, which has pushed top buyers such as China and Japan to look for supplies elsewhere. Queensland, the worst hit by Cyclone Debbie, accounts for more than 50% of global seaborne coking coal supplies and is major provider to China’s steel industry. Analysts at Standard & Poor believe disruptions in the area could mean between 15 million and 20 million tonnes of steelmaking coal, and about and 3 … Continue reading

The Dollar Is Crashing: These FOUR Execs Are Laughing…

By Zach Scheidt This post The Dollar Is Crashing: These FOUR Execs Are Laughing… appeared first on Daily Reckoning. Take a look at the list below… David Taylor, CEO of Procter & Gamble Jeff Immelt, CEO of General Electric André Calantzopoulos, co-CEO of Philip Morris Louis C. Camilleri, co-CEO of Philip Morris What do all four of these multi-millionaire executives have in common? They’re all smiling as the U.S. Dollar breaks down. You see, ever since topping in December, the value of the U.S. Dollar has been trading lower. And as this trend picks up momentum, it will send shock waves throughout the global economy. So why are these four execs celebrating? Let’s talk about what’s happening with the greenback… The Dollar is moving lower as it becomes clear that the Fed is less likely to aggressively hike rates this year. In Fed announcements and minutes, Janet Yellen has made … Continue reading

Doomsday Device

By Bill Bonner Disappearing Credit All across the banking world – from commercial loans to leases and real estate – credit is collapsing. Ambrose Evans-Pritchard writing for British newspaper The Telegraph: Credit strategists are increasingly disturbed by a sudden and rare contraction of U.S. bank lending, fearing a synchronized slowdown in the U.S. and China this year that could catch euphoric markets badly off guard. Data from the U.S. Federal Reserve shows that the $2 trillion market for commercial and industrial loans peaked in December. The sector has weakened abruptly as lenders tighten credit, especially for non-residential property. Over the last three months it has dropped at a rate of 5.4% on annual basis, a pace of decline not seen since December 2008. C & I loans, y/y growth. Readers may recall that we recently showed this chart in “Libor Pains”, in which we discussed corporate debt. Actually, y/y commercial … Continue reading

Iron ore miners shares drop as prices collapse

By analyst By Cecilia Jamasmie Shares in all major iron ore producers were getting hammered Friday as prices for the steelmaking material plunged by almost 7% overnight, erasing all of this year’s gains and placing the commodity in a bear market. Ore with 62% content in Qingdao dropped 6.8% to $75.45 a tonne, which means seaborne has declined more than 20% since its Feb. 21 peak, according to the Metal Bulletin. Earlier in Asia, futures in Dalian fell 6.2% to the lowest close in five months as steel tanked. Iron ore prices are now down 3.1% so far this year. After a 85% rise in 2016, iron ore prices are now down 3.1% so far this year, which highlights the volatility of the market. Brazil’s Vale (NYSE:VALE), the world’s No.1 producer, was down 2.29% in pre-market trading in New York to $8.95. Rio Tinto (ASX, LON:RIO), the second largest iron … Continue reading

Is Trump About to Flip-flop?

By Brian Maher This post Is Trump About to Flip-flop? appeared first on Daily Reckoning. Nearly three stymying months in office, Trump strikes us as a man fixing to get something done. First health care flopped. And tax reform — the kind Wall Street pinned its hopes upon — may soon follow. House Speaker Paul Ryan said yesterday that tax reform will take even longer than health care. Worse, he said Trump and Congress were actually closer on health care than on taxes. That’s two major tests — health care and taxes — flunked. For now at least. And so the blush comes off the peach. But is Trump about to seek victory on another front… even if it means unintentionally aligning with ISIS? We investigate the possibility today. But first a check on the races… Stocks closed lower yesterday after minutes from the Fed’s most recent confab. They suggested … Continue reading

Strange Moves in Gold, Federal Reserve Policy and Fundamentals

By Pater Tenebrarum Counterintuitive Moves Something odd happened late in the day in Wednesday’s trading session, which prompted a number of people to mail in comments or ask a question or two. Since we have discussed this issue previously, we decided this was a good opportunity to briefly elaborate on the topic again in these pages. A strong ADP jobs report for March was released on Wednesday, and the gold price dutifully declined ahead of it already, while the stock market surged concurrently. Later in the day, the Fed minutes were published, and their tone was definitely seen as very “hawkish”, at least by today’s standards. Strange happenings alert! There was quite a bit of talk about rate hikes and – gasp! – even about ending reinvestment of funds the Fed receives when debt securities in its QE portfolio mature. The merry pranksters also bemoaned the egregious bubble their own … Continue reading

Have the Neocons Gotten to Trump?

By David Stockman This post Have the Neocons Gotten to Trump? appeared first on Daily Reckoning. [Ed. Note: To see exactly what this former Reagan insider has to say about Trump and the fiscal threats from politics and the debt ceiling, David Stockman is sending out a copy of his book Trumped! A Nation on the Brink of Ruin… And How to Bring It Back to any American willing to listen – before it is too late. To learn how to get your free copy CLICK HERE.] The Donald’s emerging incapacity for even a semblance of normal governance might as well be called a Gong Show, and one that only get crazier by the day. Take the most recent so-called gas attack in Syria and the Trump Administration’s seeming 180 pivot within just seven days. This reversal is typical of the Donald and at the heart of why he will … Continue reading

Diamond giant Alrosa offices raided – report

By analyst By Frik Els According to media reports the offices of Alrosa (MCX:ALRS), the world’s top diamond producer by output, were raided by Russian security services on Thursday as part of an investigation into asset sales the company undertook in 2011 and 2013. Reuters reports Russia’s Federal Security Service or FSB raided the Moscow offices of Alrosa in relation to Alrosa’s divestment of a number of assets including a 51% stake in Timir iron ore project to Evraz and the ultimately unsuccessful negotiations with Russian oil giant Rosneft to offload the diamond miner’s gas fields. Alrosa, worth $12 billion on the Moscow Stock Exchange, posted a fourfold increase in total profit to $2.31 billion (133.5 billion roubles) for 2016. Moscow sold a 10.9% stake in the company last year raising $813 million for state coffers The miner, majority-owned by the Russian government and the far eastern province of Yakutia … Continue reading

Exclusive KE Report Commentary – Thu 6 Apr, 2017

By Cory A comprehensive update from Theralase After a couple news releases this week we have Roger White, CEO and President of Theralase to provide an update. The Company has treated one patient and has two more enrolled. We discuss the progress of the trails and what investors can expect for the rest of the year. We also touch on the brain cancer division and the financial condition of Theralase. Click here to visit the Theralase website. Download audio file (06_Apr_2017-Roger-White.mp3) …read more Source:: The Korelin Economics Report The post Exclusive KE Report Commentary – Thu 6 Apr, 2017 appeared first on Junior Mining Analyst. … Continue reading

Craig Hemke from TF Metals Report – Thu 6 Apr, 2017

By Cory Recapping the Fed minutes and the COT report for silver The Fed minutes had a couple interesting highlights that included a discussion on unwinding the balance sheet as well as a comment on stock valuations. The minutes did move stocks in the way you would think (down) but only for a short time. Yields did not react how they should if the market actually believed the Fed would be unwinding the balance sheet. Craig Hemke and I discuss these factors as well the COT report for silver… Open interest is almost at record highs again. Download audio file (06_Apr_2017-Craig-Hemke.mp3) …read more Source:: The Korelin Economics Report The post Craig Hemke from TF Metals Report – Thu 6 Apr, 2017 appeared first on Junior Mining Analyst. … Continue reading