The storm clouds over the thermal coal price have lifted recently as the price of crude has continued to rally.
From a low of $56.20 less than a month ago, Newcastle Coal Futures for March Delivery on the Intercontinental Exchange rallied another $1.75 overnight to $66.70 a tonne.
That’s a rally of 18.6% so far.
For traders the big news is that both the short term and one-year downtrends have been broken. Further out the curve June was $1.20 higher but sits at just $60.15 a tonne.
What’s it telling us?
Spot traders are more bullish than the curve – clearly the energy rallies in crude and here in coal still haven’t convinced everyone.