CHART OF THE DAY: Newcastle Coal Is Trying To Bottom

Coal trains await unloading at Port Waratah Coal Services on April 12, 2007 in Newcastle. (Getty/Corey Davis)

Newcastle Coal, the benchmark thermal coal price on the globe, has been in free-fall over the past 12 months, dropping from $85.20 a tonne last December to a low of $64.00 last week.

Last night it rallied 1.86% for a gain of $1.20 a tonne to close at $65.75 a tonne.

Two months ago that would have been a terrible price but with Joe Hockey suggesting yesterday that coal would be exempted if Australia can finalise its free trade agreement with China, sentiment might have turned.

It’s still a massive downtrend but it looks like some coal traders think the low could be in.

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