<article><p class="lead">The Port Waratah Coal Services (PWCS) terminals at Australia's Newcastle port have ramped up to full capacity after another highly windy weekend, but ship queues remain stubbornly above 40 on strong demand and an ongoing shiploader outage at the Newcastle Coal Infrastructure (NCIG) terminal.</p><p>There were 45 ships queuing outside Newcastle today, <a href="https://direct.argusmedia.com/newsandanalysis/article/2231375">up from 40 on 6 July</a> and well above the average of 10. These long shipping queues, which have more than doubled ship turnaround times to above 10 days from below five earlier this year, are adding to coal mining costs. Chinese-owned <a href="https://direct.argusmedia.com/newsandanalysis/article/2235795">Yancoal highlighted demurrage expenses as a major factor</a> in raising its cost guidance for 2021 to A$62-64/t ($45-47/t) from A$60-62/t previously.</p><p>Operations at Newcastle have been hampered by strong winds over the past two weekends, combined with a rail maintenance shutdown on the line that services the port on 24-25 July. </p><p>PWCS is on track for a strong July despite these interruptions, according to initial shipping data collated by <i>Argus</i>. The port undertook maintenance in May and June, but is now operating at full capacity, with shipments expected to come in around or slightly above the 9.26mn t achieved in June. </p><p>The NCIG terminal is still operating with only one of its two shiploaders, which is impacting loading rates. The damaged shiploader is due to be <a href="https://direct.argusmedia.com/newsandanalysis/article/2215942">recommissioned in August-September</a>, which could help ease the shipping backlog at the port.</p><p>Demand remains robust from nations outside of China for Australian coal, driving up coal prices and sending the premium for high-grade coal to record-high levels. Beijing continues to restrict imports of Australian coal.</p><p><i>Argus</i> last assessed high-grade Australian thermal coal at $151.14/t fob Newcastle for NAR 6,000 kcal/kg on 23 July, up from $120.58/t on 4 June and a low of $46.18/t on 4 September. It assessed lower-grade coal at $92.55/t fob Newcastle for NAR 5,500 kcal/kg on 23 July, up from $70.10/t on 4 June and $35.04/t on 4 September.</p><p>The heat-adjusted premium on a NAR 6,000 basis for higher-grade thermal coal was at a record $50.18/t on 23 July, up from $44.11/t on 4 June and $8.65/t at the end of August last year.</p><p>Shipments of semi-soft coking coal accounted for around 10pc of Newcastle's shipments. <i>Argus</i> last assessed the semi-soft mid-volatile coking coal price at $126.90/t fob Australia on 23 July, up from $92.90/t on 31 May and $71.20/t on 31 December.</p><p class="bylines">By Jo Clarke</p><p><div class="picture"><div><span class="pic_title">Metallurgical coal prices</span> <span class="units">$/t</span></div><img src="https://argus-public-assets.s3.amazonaws.com/2021/07/26/metallurgicalcoalprices26072021021950.jpg"></div><p><div class="picture"><div><span class="pic_title">Thermal coal prices</span> <span class="units">$/t</span></div><img src="https://argus-public-assets.s3.amazonaws.com/2021/07/26/thermalcoalprices26072021021908.jpg"></div></article>
