Though often overshadowed by the larger steelmaking commodity, iron ore, metallurgical coal, an essential fuel, has been a standout in the energy commodity market in recent times.

Australia is a major player controlling more than half of the global supply of metallurgical coal, three times more than the closest competitor, the United States.

The price of this Australian commodity, also known as coking coal, on the Singapore Exchange surged to $315 a metric ton recently, showing a 40.3% rise from its 2023 low of $224.50 a ton on July 6th.

This contrasts with Australian high-grade thermal coal which has had only a 0.5% spike from its 2023 low.

In relative terms, Brent crude oil has seen an increase of 13.4% from its December trough, while spot liquefied natural gas has slipped 2.2% from its 2023 weakest point.

In contrast with iron ore, the coking coal market is more evenly distributed with demand across both developed countries of North Asia and developing regions of South Asia.

As projected by commodity analysts Kpler, a significant portion of the recent surge in coking coal prices could be attributed to heightened demand from India.

Its imports have increased from 53.32 million tons in 2020 to 70.49 million in 2023.

However, Australian coal exports, highly impacted by severe weather conditions in Queensland, have been declining, but Kpler data shows a recovery in February with 17.86 million tons being shipped, the second-highest on record.

BHP Group (ASX:BHP), the largest global shipper of metallurgical coal, anticipates sustained demand for this market for decades.

However, concerns are present over new investments due to the Queensland state government’s significantly increased royalties in July 2022.

BHP Group is an Anglo-Australian multinational mining, metals and petroleum company regarded as the world’s largest in the mining and metals sector.

Australian shares concluded largely unchanged on Thursday as losses in financial majors counterbalanced gains in the mining and energy sectors.

Investors were nervously focused on the Federal Reserve’s latest meeting minutes, indicating anxiousness about potential premature rate cuts.

The S&P/ASX 200 benchmark index wrapped up the trading day relatively flat at 7,611.20 points, after experiencing a decrease of 0.7% on Wednesday.

According to Treasury notes from the Federal Reserve’s meeting at the end of January, officials appear unhurried to reduce rates, although they expressed certainty that policy rates could be trimmed later in the year.

Tim Waterer, top market analyst at KCM Trade, reflected that investors may have to hold on for several more months before the first rate cut from the Federal Reserve is seen.

Heavyweight financials witnessed a dip of 0.2%, with ‘big four’ banks experiencing a fall between 0.1% and 0.4%.

Conversely, mining sector edged 0.1% higher with Fortescue (ASX:FMG) recording a rise of 2.1% following the release of a better than expected half-year profit report and a dividend announcement.

Healthcare stocks likewise saw a 0.3% increase, with biotech colossal CSL (ASX:CSL) growing by the same percentage.

Energy stocks (ASX:AXEJ) snapped a three-day losing streak and increased by 0.5% with sector leading Woodside Energy (ASX:WDS) rising by 0.8%.

CSR (ASX:CSR) witnessed its stocks soaring to an almost 18-year high after confirming a takeover offer worth A$4.30 billion from France’s Saint-Gobain.

However, Qantas (ASX:QAN) tumbled 6.8% to register its worst session in a year, following the announcement of a lower half-year profit.

Fortescue (ASX:FMG) is a globally significant iron ore producer and explorer, with majority of its assets based in Australia.

Shares of Rio Tinto (ASX:RIO) dipped as much as 2.2% to A$123.080, marking its lowest level since November 14, 2023.

Despite a 12% reduction in the annual underlying profit, which rounded out to $11.8 billion, the figures aligned with LSEG’s estimate of $11.7 billion.

Rio Tinto, the world’s largest iron ore miner, also foresees a rise in production costs at its Pilbara iron ore unit, estimating a hike to between $21.75 and $23.50 per metric ton in 2024, up from $21.50 in 2023.

Despite negative sentiments, Macquarie embraces optimism for 2024, identifying it as a potential ‘inflection year’ for the miner.

Rio Tinto is expected to continue its growth strategy, pushing for project executions and enhancing underlying asset health.

While Macquarie maintains its share price target at A$120, Jefferies has reduced its price target for the company to A$158 from A$160, but maintains a ‘buy’.

As of the latest close, Rio Tinto’s stock is down 7.3% YTD.

Rio Tinto (ASX:RIO) is the world’s largest iron ore mining company.

Shares of Vintage Energy (ASX:VEN) have fallen as much as 8.7% to A$0.021, reaching a record low.

The company reported a HY loss of A$13 million, significantly higher than the A$2.7 million loss from the previous year.

A total of 2.3 million shares have changed hands, which is 1.9 times the 30-day average volume of shares.

For this year, as of the last close, the stock is down by 11.5%.

Vintage Energy is an Australia-based oil and gas exploration company.

Shares of Qantas Airways (ASX:QAN) spiked as much as 3.9% to A$5.805, recording their largest intraday percentage gain since November 23, 2022.

The Australian flag carrier announced an additional on-market share buyback of up to A$400 million.

The company also posted a 12.8% dip in HY underlying profit to A$1.25 billion.

Even though it was a decrease, it was 3% above RBC’s estimate, albeit 1.1% below the consensus estimate.

In terms of revenue, the company registered a 12.3% increase in HY revenue to A$11.13 billion, exceeding a Visible Alpha consensus of A$10.7 billion, as per Citi’s data.

As of the last close, QAN stocks had appreciated approx 4% Year-to-Date.

Qantas Airways is Australia’s largest airline servicing both domestic and international routes.

Shares of Bega Cheese (ASX:BGA) are poised for their best day since January 19, 2017, rising by as much as 14.4% to reach A$4.060.

The significant surge is a result of a robust half-year net profit report showing a striking 263% increase to A$26.5 million.

Bega Cheese also announced an interim dividend of 4 Australian cents per share.

The company’s shares have reached their highest level since January 19, 2023.

Approximately 1.5 million shares have been exchanged, compared to an average 30-day volume of 617,615 shares.

Should current gains hold, the company’s shares are on track to break a four-day losing streak.

Bega Cheese’s stock was up 0.3% year-to-date at the last close.

Bega Cheese is a leading Australian dairy company.

Pilbara Minerals (ASX:PLS) first-half profit reported a 78% drop due to weak lithium prices.

To preserve capital for further investment, the company has not declared any interim dividend.

The underlying profit post-tax stands at A$273 million for the six months ending on Dec.

31, showcasing a stark contrast against the A$1.24 billion reported the previous year.

In the previous year, the company declared an interim dividend of 11 Australian cents per share.

This marked theirs first dividend declaration in 15 years post their public debut.

Pilbara Minerals (ASX:PLS) is Australia’s leading pure-play lithium miner.

This report details the most recent mergers, acquisitions, and significant disposals reported up until 2100 GMT this Wednesday.

Australian building materials enterprise CSR (ASX:CSR) reports receiving a non-binding takeover proposal valued at A$4.30 billion ($2.81 billion) from French construction materials group Saint-Gobain.

In the software sector, French company Axway has begun discussions to potentially acquire the majority of Sopra Banking Software’s activities from Sopra Steria.

In mining, U.S.-based Piedmont Lithium announces it will sell its remaining shares in Australian miner Sayona Mining for approximately A$59.9 million ($39.28 million).

A consortium headed by state-owned pharmaceutical titan Sinopharm has rejuvenated its bid to take China Traditional Chinese Medicine Holdings private, valuing the Hong-Kong-listed drug maker at HK$23.16 billion ($2.96 billion).

Consumer electronics conglomerate Samsung Electronics from South Korea has dispensed its remaining stake in semiconductor manufacturing equipment producer ASML as documented in a company filing from last year’s fourth quarter.

To bolster its geographical influence in the mining chemicals business, Australia’s Orica has revealed it will acquire U.S.-based chemical company Cyanco Intermediate 4 Corp for $640 million.

British billionaire Jim Ratcliffe concludes his acquisition of a 25% equity interest in Premier League club Manchester United, thus ending a 15-month-long endeavor.

Capital One Financial’s $35.3 billion transaction for acquiring Discover Financial could engender new competition for payment giants Visa and Mastercard, potentially facilitating the pathway for regulatory approval, predict analysts.

This information was compiled by Rajarshi Roy, Annett Mary Manoj, and Pritam Biswas in Bengaluru.

CSR (ASX:CSR) is an Australian company that specializes in the production and distribution of building materials.

Shares in Australia are set to open at a lower value this Thursday, with a dip also expected for local miners as investors keep an eye out for the U.S.

Federal Reserve’s January policy meeting, which includes potential insights into prospective interest rate cuts.

The local share price index futures (ASX:YAPcm1) saw a 0.3% reduction, which is a 66.4 point discount compared to the basis of the S&P/ASX 200 index (ASX:AXJO).

This followed Wednesday’s closing of 0.7% below its initial value for the benchmark.

Furthermore, the S&P/NZX 50 index in New Zealand experienced a marginal dip of 0.1% to bring its starting trade value to 11,575.87.

S&P/ASX 200 Index (ASX:AXJO) is a market-capitalization weighted and float-adjusted stock market index of stocks listed on the Australian Securities Exchange.

In a recent financial update, Qantas (ASX:QAN), Australia’s flagship airline, reported a 12.8% drop in its first-half profit, coupled with an announcement of an additional on-market buyback up to A$400 million.

The airline showed an underlying profit before tax of A$1.25 billion ($785.88 million) for the six months that ended December 31.

This is a drop compared to the A$1.43 billion reported the year before.

The numbers fell short of a consensus estimate of A$1.26 billion, as presented by Jefferies.

Qantas is a major Australian airline, known for its domestic and international flight services.