Debbie affecting Coal; other energy
Cyclone Debbie damaged coal rails in NE Australia, thus increasing prices across Asia. Debbie may have impacted other energy commodities as well, such as natural gas and oil. However, Jim Roemer says that “The coal industry is a dying industry in the energy sector. This move is probably only short-term.” Check out his latest article on Seeking Alpha: https://seekingalpha.com/article/4060449-california-going-nuts-coal-prices-soar-debbie-natural-gas-commodities
See the Reuters article below for details on Debbie’s impact in Australia.
“Damage to rail lines in cyclone-hit northeast Australia is set to disrupt exports of the steel-making material from the world’s largest coking coal region, underpinning prices and raising the prospect of major producers declaring force majeure. The extent of the damage, which will hit coal mines operated by BHP Billiton Ltd and Glencore PLC, was revealed in the wake of deadly Cyclone Debbie, which struck last week and left a disaster zone stretching 1,000 km (600 miles). Four people have died in floods in Queensland and New South Wales states, with another three missing.
Coal hauler Aurizon Holdings said on Monday it would take up to five weeks to repair parts of its network of rail lines that connects mines to ports in Queensland, with alternative routes being considered for coal transported on the worst-affected Goonyella line. Queensland accounts for more than 50 percent of global seaborne coking coal supplies, with Goonyella alone transporting more than half of the state’s coal – mostly coking coal, used for steel making.”
Read more of this article on Reuters: http://www.reuters.com/article/us-australia-cyclone-coal-idUSKBN1750BZ
(Reporting by Jamie Freed and Tom Westbrook in SYDNEY. Additional reporting by Melanie Burton in MELBOURNE and Henning Gloystein in SINGAPORE. Writing by Jonathan Barrett; Editing by Richard Pullin)
