The energy rally continues and Newcastle coal is going along for the ride with prices on the Intercontinental futures exchange up $1.07 overnight, or a rise of 1.76%.
The overnight move has now driven coal more than 10% off the January low and broken the 6-month downtrend that traders have been watching.
Of course, coal’s outlook is not entirely its own and in no small part this rally is related to the big 10% move in the price of crude over the past few trading sessions.
So, reports in the WSJ out of China that mines are being shut due to falling demand suggests the price recovery still has some hurdles. But at least, for the moment, coal has broken is downtrend and the bottom for Australian miners could be in.
That’s good news.
Here’s the chart.