The rally in energy prices recently has taken prices for Newcastle thermal coal along for a very solid rise of more than 25% from January’s lows.
But, the big news is that at $70.40 a tonne, Newcastle coal has now broken a 4-year downtrend.
The price curve has the rest of 2015 trading below the March contract. April is trading at $67.25, June $64.50 and December $62.85 a tonne.
So, the question for traders is whether this is just a front month short squeeze or has coal finally found a base.