The coronavirus is making the coal market a bit bullish

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The global commodity market has been thrown into disarray by the virus which is disrupting raw material supply chains and subduing demand

The global commodity market has been thrown into disarray by the virus, which is disrupting raw material supply chains and subduing demandEmployees work on a pile of coal gangue in Huaibei, Anhui province, China. Picture: REUTERS

The global commodity market has been thrown into disarray by the virus as Beijing keeps swathes of the country on lockdown, disrupting raw material supply chains and subduing demand. The fallout has hammered global prices of everything from oil to copper, but coal joins a handful of commodities such as fertiliser that are getting a boost.

The price arbitrage for seaborne and Chinese coal has widened, implying a window is open for China to boost imports, according to Marex Spectron analyst Hui Heng Tan.Mine suspensions will probably cut China’s coal production by 145-million tonnes, said Dennis Ip, an analyst at Daiwa Capital Markets Hong Kong. While that’s about 4% of the country’s total output last year, it’s equivalent to almost half its imports and could have a significant impact on the seaborne market.

 

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Lol!!

GOD SHOWS US THAT IS NEVER BEING LATE OF ASKING HIM FORGIVINESS

Viruses tend to infect coal and make it sick you know.

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