Physical coal markets can’t seem to catch a break. Even as paper prices strengthened slightly across the curve, the discount to physical deepened as lack of buyer activity persisted. The Rand is also stubbornly strengthening as a wave of “risk on” sentiment permeates global markets and the energy complex. Natural gas and emissions prices saw some impressive gains, with natgas seeking to escape its weakest price in a long time. Chinese domestic prices remain firm, towards the top end of government’s preferred range, although this lends little to no support to Newcastle or SA coal prices, with Chinese utilities buying local instead.
