As Met Markets Tumble, Where's the Bottom?

Overnight in Asia, coking coal prices continue to sell off, with PLV down another $1 from Friday to $270/mt. When I wrote about met markets two weeks ago, I mentioned how well supported met prices had been, especially compared to iron ore and steel prices. I suppose this was wishful thinking. Those markets are more liquid, and generally better supplied, so the downturn in ferrous markets was simply a leading indicator of things to come for met markets.

In terms of commentary as to why met markets are selling off, I'll quickly summarize it as a demand phenomena. Although supply has been improving somewhat out of Australia and Canada, I don’t think the major impetus for the selloff is from supply.