India, Russia to cooperate on coking coal

  • Market: Coking coal
  • 07/16/21

India and Russia have agreed to a cooperation on coking coal, a move that will "benefit the entire steel sector by reducing their input cost", the Indian government said on 14 July.

"The activities involved in the cooperation are aimed at diversifying the source of coking coal," the Indian government said but did not provide further specifics on the nature of the cooperation.

India's coking coal imports stood at 25.05mn t in January-May, up by 36pc on the year, with domestic steel production recovering from the effects of Covid-19 last year. Import volumes retreated in May on high fob Australia metallurgical coal prices and sporadic lockdowns in India from the second Covid-19 wave that hit the country towards the end of March.

The Argus premium low-volatile hard coking coal index stood at $210.35/t on 15 July, compared with $109.80/t on 16 July 2020.

India imported 76,000t of coking coal from Russia in May, up by 125pc on the year. January-May imports from Russia stood at 468,000t, up by 10pc on the year.

India's crude steel output rose to 8.52mn t in May, up by 3pc from April and by 36pc from May 2020.


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
02/20/24

BMA's Australian coal at low end of output target

BMA's Australian coal at low end of output target

Sydney, 20 February (Argus) — BHP Mitsubishi Alliance's (BMA) Australian coal production is trending towards the bottom half of its decade-low guidance for the 2023-24 fiscal year to 30 June, as heavy rainfall disrupts production. BMA, which is 50pc owned by Australian resources firm BHP and 50pc by Japanese trading house Mitsubishi, cut its 2023-24 guidance to 46mn-50mn t of metallurgical coal in January from the previous guidance of 56mn-62mn t issued in July. But heavy rainfall so far this year means it is trending towards the lower half, according to BHP chief executive Mike Henry. The firm was already operating on low inventories because of higher than average rainfall in 2022, as the La Nina weather pattern delivered increased rainfall to the east coast of Australia. This meant that heavy rainfall in 2023 and early 2024 has quickly flown through into disruptions to production, although the firm is working on building inventories through the system, Henry added. The wet end to 2023 and start of 2024 was not expected because of the El Nino weather phenomenon that typically drives drought conditions on the east coast . The atypical wet weather has prompted US-Australian coal mining firm Coronado to factor in more heavy rainfall disruptions in Queensland into its 2024 guidance . Around 3mn-4.5mn t of BHP's cut in BMA guidance is because of the planned sale to Australian mining firm Whitehaven of its Blackwater and Daunia coking and thermal coal mines in Queensland, which is on track to be completed on 2 April. BHP estimates that the sale will increase its proportion of premium hard coking coal so 86pc of its Queensland coal sales from 64pc now and 55pc prior to its sale of its 80pc stake of BHP Mitsui Corporation to Australian independent Stanmore in 2022 . Henry remains optimistic on the outlook for coking coal prices, with demand growth from India and a muted supply response. But he argues that an effective tax rate of 62pc in Queensland following higher royalty rates imposed in July 2022 makes it an unattractive investment opportunity. BHP despite the lower production outlook retained BMA's cost guidance, which it revised in January, for 2023-24 at $110-116/t. The Argus premium hard coking coal price averaged $295.86/t in 2023, down from $365.60/t in 2022 but up from $223.16/t in 2021 and $124.26/t in 2020. By Jo Clarke Australian metallurgical coal prices ($/t) Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Read More
News

More rainfall cuts Coronado's Australian coal outlook


02/20/24
News
02/20/24

More rainfall cuts Coronado's Australian coal outlook

Sydney, 20 February (Argus) — US-Australian coal producer Coronado Coal is factoring in new Australian wet weather patterns in its unambitious saleable coal guidance of 16.4mn-17.2mn t for 2024. Wetter than expected weather in Queensland in 2023 and port delays contributed to Coronado selling 15.8mn t of coal in 2023 , missing its revised guidance of 16.2mn-16.4mn t . Coronado is investing to expand metallurgical coal sales from Australia and the US, yet the 2024 guidance compares with the original 2023 target of 16.8mn-17.2mn t set in February 2023 . This is partly to allow growth plans to push production across Australia and the US to 20.5mn t/yr over the next couple of years. But it also reflects the firm allowing for extra disruption from heavy rainfall at its Curragh operation in Queensland, rather than using a straight 10-year average, as has been standard. After a very wet 2020-22, associated with the La Nina weather pattern, 2023 was meant to be a drier year dominated by an El Nino trend that usually brings drier than average weather to the east coast of Australia. But the coal mining regions in Queensland have had a wet 2023, with particularly heavy rainfall from November 2023 into 2024. This is forcing mining firms to reconsider their production and sales expectations from mines in Queensland. Australian coking coal exports for 2023 were 151.28mn t , which is the least shipped since 2012, down from 160.53mn t in 2022 and a peak of 186.83mn t in 2016, according to Australian Bureau of Statistics data supplied by GTT. This was despite firmer prices in 2023, particularly for high-grade metallurgical coal sold from Queensland, that should have driven producers to increase supplies. Demand for Australian coking coal will continue to grow driven by India but supplies remain constrained, according to Coronado chief financial officer Gerhard Ziems. Coronado reported a profit of $156.1mn in 2023, down from $771.7mn in 2022, but maintained a modest dividend payout as it looks to deploy capital to grow its capacity to supply the metallurgical coal business. It has internal growth plans, including expanding the Curragh metallurgical and thermal coal mine in Queensland to 13.5mn t/yr in 2025 and its US coal mines to 7mn t in 2025. The Argus premium hard coking coal price averaged $295.86/t in 2023, down from $365.60/t in 2022 but up from $223.16/t in 2021 and $124.26/t in 2020. By Jo Clarke Australian metallurgical coal prices ($/t) Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Aurizon cuts Australian coal haulage guidance


02/12/24
News
02/12/24

Aurizon cuts Australian coal haulage guidance

Sydney, 12 February (Argus) — Australian rail firm Aurizon has cut its coal volume guidance for the 2023-24 fiscal year to 30 June, as the end of mining at Wilkie Creek and wider coal mine production problems offset output increases at Olive Downs and New Acland. Aurizon had targeted to increase coal haulage by 10pc in 2023-24 from the 185mn t it hauled in 2022-23 but revised that to 5pc year-on-year growth when it announced its half-year results on 12 February. This implies a target of 194mn t for 2023-24. It hauled 94mn t during July-December, leaving it a target of 100mn t for January-June. Wet weather in Queensland in late December, through January and into February has disrupted some operations in the wider coal industry. But it has been less disruptive to Aurizon's coal operations than previous Queensland wet seasons, the firm's managing director Andrew Hardy said. The firm hauled 94.5mn t of coal during January-June 2023 when flooding cut access to some mines. Aurizon's August guidance of 10pc growth in haulage was based partly on a contract to deliver coal from the 2.4mn t/yr New Wilkie mine near Dalby, Queensland but mining has stopped after the operator entered administration](https://direct.argusmedia.com/newsandanalysis/article/2524314). Aurizon is still talking with the receivers and some cargoes are being loaded from stocks but full contract volumes are unlikely to be met. Haulage increased by 70pc during July-December compared with a year earlier on the West Morton line, as New Hope increased production at its New Acland mine . It was also up for New South Wales (NSW), Moura and Blackwater lines because of drier conditions than a year earlier. This was offset by 16pc and 6pc lower haulage on the Newlands and Goonyella lines respectively. Newlands runs south from Abbot Point port to North Goonyella, servicing Glencore's 2.5mn t/yr Collinsville thermal coal mine and a handful of mines owned by Australian mining firm QCoal. Goonyella runs west from the adjacent ports of Hay Point and Dalrymple Bay Coal terminal to join with Newlands at North Goonyella, servicing more than 20 mines in the Bowen basin . Aurizon started hauling coal for the 4.5mn t/yr Olive Downs metallurgical coal mine in January, which will travel on the Goonyella line. Aurizon is operating at around 82pc utilisation rates, up from 78pc during the Covid-19 pandemic and is aiming to return to 90pc. But it is facing competition from BMA rail in Queensland and Magnetic Rail in NSW, as well as Pacific National in both states. By Jo Clarke Aurizon coal haulage (mn t) Jul-Dec '23 Jan-Jul '23 Jul-Dec '22 Central Queensland Coal Network Newlands 6.7 8.1 8.0 Goonyella 28.0 30.4 29.7 Blackwater 24.0 21.9 22.5 Moura 7.7 6.3 6.7 Total 66.3 66.7 66.9 NSW and SE Queensland West Moreton 1.7 1.1 1.0 Hunter valley/Illawarra 26.0 26.7 22.6 Total 27.7 27.8 23.6 Total coal 94.0 94.5 90.5 Source: Aurizon Totals may not add up because of rounding Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

El Nino to end in April-May: Australia’s BoM


02/06/24
News
02/06/24

El Nino to end in April-May: Australia’s BoM

Sydney, 6 February (Argus) — The El Nino weather phenomenon has peaked and is declining, Australia's Bureau of Meteorology (BoM) said, pointing to neutral El Nino–Southern Oscillation levels developing in the southern hemisphere from April. International forecasts and observations suggest surface temperatures in the equatorial Pacific are expected to return to neutral levels, indicating neither an El Nino nor La Nina phenomenon by April or May, with the latest climate model from the BoM returning to neutral in June. The forecast for more neutral climate drivers comes after a wetter than expected summer for much of eastern Australia, foreshadowed by a positive Southern Annular Mode (SAM) in December-January, which typically brings above average rainfall for parts of eastern Australia and Tasmania. The SAM will become briefly positive in early February before returning to neutral, the BoM said on 6 February. February rainfall is forecast to be below median for most of Australia, with February-April rainfall likely to be below median for northern Australia, including the coal-producing areas of Queensland state's Bowen basin. The Madden–Julian Oscillation (MJO) is currently over the western Pacific, where it increases the chance of above average rainfall across northeastern Australia. But most models suggest it will move eastwards, losing strength this week. Australia's wetter and milder than anticipated summer weather led to predictions of lower farm incomes for the 2023-24 year ending 30 June , and concerns about bushfires affecting key export corridors for commodities such as coal, which have not eventuated so far. Cattle supply has been impacted by the lingering effects of ex-Tropical Cyclone Kirrily, which led to localised flooding in parts of Queensland, with wet conditions across the region cutting demand for bitumen products Coal loadings were disrupted at a number of Queensland's ports and slowed chartering activity, although terminals reopened two days later. But the wetter-than-expected weather has been blamed for coal ship queues remaining long in 2024. Australian cattle slaughter rates, which were predicted to rise significantly in 2024 under El Nino conditions, may be revised down if fewer breeders are directed to processors because of more positive weather patterns. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Australia’s Dec coking coal exports at six-month high


02/05/24
News
02/05/24

Australia’s Dec coking coal exports at six-month high

Singapore, 5 February (Argus) — Australia's metallurgical coking coal exports in December continued to recover from October and November to a six-month high, because of firm demand and higher shipping throughput. Total coking coal exports were at 14.1mn t in December, rising by 9.3pc from 12.9mn t in November, but falling marginally by 0.8pc on the year, according to data published by the Australian Bureau of Statistics (ABS). Exports were at 12.1mn t in October and 11.2mn t in September. Hard coking coal (HCC) shipments were down by 5.5pc on the year but up 2.2pc on the month to 8.78mn t in December. HCC exports to largest buyer India declined in a time of elevated coking coal prices, but this was cushioned by a twofold increase on the month in HCC exports to South Korea. Weather disruptions continued to weigh on Australian coking coal exports, with long coal queues persisting at major ports. But collective coal shipments in December from Hay Point, Dalrymple Bay Coal Terminal, Abbot Point and Gladstone were up by 2.8pc on the year and rose by 1.7pc on the month to 17.6mn t. Total Australian exports for 2023 declined by 5.8pc on the year to 151.3mn t, but the government's commodity forecaster the Office of the Chief Economist (OCE) expects coking coal exports to increase to 174mn t in 2024-25 alongside strong global steel consumption. The Argus premium low-volatile hard coking coal price averaged $326.87/t fob Australia in December, up by 2.3pc from the November average and jumping by 23pc on the year. The Argus-assessed Australian premium low-volatile hard coking coal price was at $319/t fob Australia on 2 February. The average export price for Australian hard coking coal was $226.08/t in December, down by 1.1pc from November but rising by 8.7pc on the year. Prices were based on an Australian-US dollar exchange rate of 0.684 used by the ABS for December, up by 2.9pc from November's rate. Semi-soft and pulverised coal injection (PCI) grade shipments were at 5mn t in December, increasing by 2.9pc on the year and by 16pc on the month. Exports to largest buyer Japan declined by 10pc on the year, but rose by almost 40pc from a month earlier. The average export price for Australian semi-soft coking coal was $206.65/t in December, up by 1.7pc on the month but falling by 18pc on the year. The Argus-assessed PCI price averaged $187.19/t in December, down by 1.2pc on the month and falling by over 26pc on the year. The Argus low-volatile PCI price was at $177.35/t fob Australia on 2 February. By Cassia Teo Australia coking coal exports (mn t) Destination Dec-23 % ± vs Nov % ± vs Dec '22 Jan-Dec ± % Jan-Dec 2022 Hard coking coal China 0.57 102.07 N/A 3.20 N/A Japan 1.39 -15.73 1.24 17.85 -8.73 South Korea 1.34 103.16 -0.81 11.04 -11.12 Taiwan 0.53 46.77 -14.69 4.88 -11.01 India 2.81 -10.95 -13.02 32.43 -7.39 Vietnam 0.26 -28.17 -58.67 4.88 -23.05 Total 8.78 2.16 -5.51 99.63 -6.31 Semi-soft and PCI coking coal China 0.34 41.52 N/A 1.49 N/A Japan 1.66 39.72 -10.18 18.34 -6.42 South Korea 1.02 13.06 -7.24 8.94 -11.35 Taiwan 0.45 67.38 57.32 3.64 -9.33 India 0.75 -0.51 -10.45 9.50 -6.02 Vietnam N/A N/A N/A 0.91 -61.02 Total 5.01 16.40 2.92 50.97 -4.26 Source: ABS, GTT Total includes all destinations not just those listed Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.