Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Tuesday, 8 November 2016

Budget windfall

Pilbara records

Exports of iron ore from Port Hedland in the Pilbara jumped to a record 469 million tonnes in October, up by +6 per cent from a year ago.

The monthly total for October of 41.7mt was a +12 per cent increase from October 2015, with Gina's Roy Hill mine now a contributor to the epic volumes.

China imported over a billion tonnes of iron ore over the year to October, which is a mind-blowing statistic.

The iron ore price has increased by an unreal +57 per cent this year to a two-year high, which is impressive enough, but the action in coal markets has defied belief.

I can hardly keep up with movements in coal prices, but last time I checked the coking coal price has was blazing towards a plainly ridiculous $307.20/tonne (Tuesday), while Chinese coking coal futures hit their highest level on record and thermal coal rose by another +34 per cent to October to hit $104.20/tonne by the close on Monday.

All completely mad. 

Who knows how long this madness can last? 

The longer the better from the perspective of Australia's budget!