Resource World Magazine

34 www.resourceworld.com D E C E M B E R / J A N U A R Y 2 0 1 8 IRON ORE In a recent report, Australian banker Macquarie predicted that the iron ore price is set to remain buoyant for the remain- der of the year. They previously saw the benchmark spot price for 62% fines aver- aging $50/tonne in the first quarter 2018, but now estimate it will settle around $73/ tonne – an increase of 46%. The bulk-shipped material has been on a tear since June when it was trading in the mid-$50s, largely due to increased Chinese steel production. China's steel production in July rose more than 10% compared to last year to a record 74 million tonnes as traders worry about a steel supply crunch going into the new year. Beijing wants to cut output by as much as 50% during winter months to fight smog, particularly in its capital city and surrounding areas. COAL Macquarie said recently that it expects coking coal prices to remain elevated for longer than it previously anticipated. The bank revised its near-term coking coal price forecasts by 32% and 40% in the first and second quarters next year, respec- tively, to $185 and $175/tonne. It said the upgrades were based on Chinese restock- ing demand and tight coking coal supply. World thermal coal trade is forecast to fall by 2.1% to 990 million tonnes in 2018, and then to decline by a further 0.4% in 2019 to 986 million tonnes according to the Australian publication Resources and Energy Quarterly. The falls in trade volumes are expected to be driven by lower import demand from China, India and South Korea. A range of nations – including China – are investing in ways to achieve higher energy efficiency by using advanced technology coal-fired power plants. Some countries are also conducting research and development in areas such as carbon capture and storage, to reduce carbon emissions. DIAMONDS Worldwide diamond demand in 2016 was essentially flat, as a 4.4% gain in the US offset sluggishness in Asia, according to a De Beers industry report published in September this year. The world's biggest diamond producer is seeking ways kick start an industry that has seen prices for polished diamonds slump for the past six years, in part due to a younger generation of Chinese shoppers increasingly spending more on high-end electronics, travel and fine dining than on jewelry. De Beers is seeking to influence buy- ing trends by spending $140 million this year to advertise diamonds, the most since 2008. It is focusing on women in its main markets, particularly those between the ages of 18 and 33 who De Beers says are buying diamonds for themselves as their earning power increases. MANGANESE Macquarie named manganese prices the most volatile during 2017, reaching a 10-year high early in the year before more than halving just a few months later. Chinese manganese imports shot up 39% in 2017, mainly from SA, where miners

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