Coking Coal at Bottom, Set to Rebound, Citigroup

The Australian reported today that the outlook for coking coal prices seems to be picking up, with predictions for a price between US$130 and US$150 per tonne near term. Prices could reach up to US$170 in the longer term, according to the news outlet.

As quoted in the publication:

The commodities desk at Citi has been one of the first to call a bottom in coking coal prices, tipping a rebound in coming months, but with its long-term price expectation trimmed by $US10 to $US170 a tonne.

Its short-term bullishness — $US143 a tonne in 2015 and $US152 a tonne in 2016 — is based on a pick-up in Chinese steel ­demand, announcements of the closure of 14 million tonnes of annual production since April, and a slowdown in new supply growth.

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