Iron Ore

Contract coal prices look to have fallen 44% on last year, but a weaker AUD and falling production costs are compensating Australian producers.

The story of this year’s annual iron ore negotiations remains dominated by re-stocking, weak demand and a Chinese surplus package.

Deflation is the biggest threat currently facing the global economy. How would this affect the stock market?

With the first thermal coal settlements in Japan indicting a benchmark price of US$70/t, brokers are starting to pick their Aussie coal favourites.

Shareholders are already revolting but analysts see merit in Rio’s Chinalco deal.

Weekly musings from your editor. What price should BHP shares trade at and is current investor optimism justified?

Recent data out of China suggest improving demand in the steel sector but Barclays and steel industry consultant MEPS suggest it remains too early to be optimistic on prices.

There are icebergs ahead but the Big Australian is no Titanic.

Centennial Coal’s focus on higher margin exports and thermal coal makes it a defensive exposure in the sector, analysts say.

According to Barclays Capital, worsening economic fundamentals and increasing supply suggest little scope for shorter-term gains in commodity prices.