Coking coal prices are going vertical, continuing its enormous rally since May.
Nothing shows this better than the chart below from Metal Bulletin, posted on Twitter today. They say a picture speaks a thousand words, and this is no exception.
According to Metal Bulletin, the premium hard coking coal price (FOB, Australia) has jumped 41% in August to nearly $140 a tonne.
On Tuesday alone it added nearly 9%.
In a note released last week, Vivek Dhar, a mining and energy commodities analyst at the Commonwealth Bank, said prices were being driven by supply shortages in China.
“A coking coal shortage in China has emerged as highways in the coal-producing province of Shanxi were closed for repairs following heavy rainfall last month,” he wrote in a research note released on Friday.
“While transport conditions are reportedly improving, steel mills are still anxious to secure coking coal.”
Anxious they are, based on the chart above.
You can follow Metal Bulletin on Twitter as @IronOreIndex.