Abstract: China-Australia relations have recently become tense, and Australia’s improper practices are affecting the trade relations between the two countries.
October 13th China-Australia relations have recently become tense, and Australia's improper practices are affecting the trade relations between the two countries. Australian media recently reported that Chinese power stations and steel mills have been verbally told to stop importing Australian coal. Australian officials said they are in contact on this matter.
On Tuesday (October 13), silver futures opened at 25.240 US dollars per ounce, the highest reached 25.310 US dollars per ounce, and the lowest touched 24.720 US dollars per ounce. As of press time, it temporarily reported 24.870 US dollars per ounce, a decrease of 1.59%.
Media says Australian coal is banned
According to Australia's "Sydney Morning Herald" report, there is news that China's state-owned energy companies and steel mills have received official verbal notices to stop them from importing coal from Australia.
The report stated that Chinese power stations and steel mills have been verbally told to immediately stop using Australian coal. The port was also told not to unload Australian coal. It is not clear when the latest import ban will end or how it will affect long-term contracts that have already been signed. Australian Trade Minister Simon Birmingham said on Tuesday: "We are approaching the Chinese authorities on this speculation."
According to data from the Australian Department of Industry, China is the largest consumer of metallurgical coal in Australia, accounting for nearly a quarter of Australia's exports. According to a report last month, in the 12 months to June 30, due to falling prices and weak demand, the export revenue of this steelmaking raw material is expected to fall from A$35 billion last year to A$23 billion ( 16.6 billion USD). China is also the second largest destination for Australia's thermal coal exports, after Japan. The market’s annual export revenue is expected to fall from A$20 billion in fiscal year 2019 to A$15 billion.
Silver futures market outlook
Affected by the epidemic, the US election and other international situations, precious metals still have a certain degree of support. However, the Asian silver futures on this trading day have corrected and hovered near key support levels.
Yesterday, silver futures rose significantly and exceeded $25/oz. As long as this level is maintained, the price of silver is expected to test to $26-27/oz. However, this level fell below this trading day, but the Kshitij consulting services team said that as long as silver futures remain above 24.40 US dollars per ounce, the short-term view is still bullish.
Judging from the 1-hour chart, the green kinetic energy column is gradually getting longer and continuing, and silver futures are facing further corrections. At present, we need to pay close attention to the key support level of 24.4 US dollars. What needs to be vigilant is that if this level falls, silver futures may face a larger correction.