Coal Prices Start To Rise As La Nina Blows In The Pacific
Tim Treadgold, Contributor- Forbes
Tim Treadgold is an Australian journalist specializing in mining
It might not be a boom, but coal is on the verge of a weather-driven price rally which should boost the earnings of coal miners and explain why Glencore has dropped plans, for now, to quit the coal business.
La Nina is the event which is being closely tracked by weather forecasters, commodity analysts and investment banks because it has a record of causing floods which can close ports in Australia and double the price of coal almost overnight.
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The opposite of the better known El Nino which causes drought in Australia, La Nina is an event which develops when sea temperatures in the Pacific cool, bringing heavy rain in Australia, parts of Asia and West Africa, and drought in the Americas. The Australian bank ANZ published a warning note for clients earlier this week that a La Nina event was likely over the next six-to-nine months and “could have a sizeable impact on short-term supply and demand patterns across a range of commodities”. Click here to read the full article as published in Forbes Magazine.
