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US coking coal output dips in 3Q

  • Spanish Market: Coking coal
  • 01/12/22

US third-quarter coking coal output fell by about 3pc from April-June, but was 1-2pc higher than a year earlier at 14.6mn st (short tons), Mines Safety and Health Administration (MSHA) data show, as weak demand signs emerged and rail delays and geological conditions held some producers back.

Russia's invasion of Ukraine coincided with suppliers lifting first-quarter output to the highest since 2019 — in response to record prices at the end of 2021 and beginning of 2022. Second-quarter output was stable.

Third-qurter exports fell more sharply, as a weak macroeconomic environment led to lower steel demand. Overall exports fell by 11.3pc from April-June to 10.51mn t, but were 2.56pc higher year on year, trade data show. For some producers, demand for coking-quality cargoes for thermal use offset weaker seaborne coking demand.

Arch's third-quarter output fell by 21.6pc from April-June to 1.71mn st because of difficult cutting conditions at its new Leer South mine. But start-up of the mine meant that the company's coking coal output was 2.4pc higher than a year earlier.

Output at the Buchanan low-volatile mine rose by 26pc from April-June to 1.19mn st, but was down by 12pc on the year.

Blackhawk's production of high-volatile coal increased by 5.3pc on the quarter and fell 8.5pc on the year to 1.48mn t.

Output at Warrior's Blue Creek 7 mine fell by 11.1pc on a quarterly basis, but was 3pc up on the year, at 1.16mn st. Production at Blue Creek 4 rose by 33.9pc on a quarterly basis to 479,867 st. Industrial action halted output in the third quarter of 2021.

Corsa's low-volatile coking production fell by 6.9pc on a quarterly basis and 12.8pc on the year to 218,937 st.

September exports increased by 9.1pc from a year earlier to 3.87mn t, driven by higher shipments to the EU, Brazil and India. Deliveries to the EU rose by over 130pc year on year to 1.49mn t, as suppliers continued to find alternatives to Russian coal. Shipments to the EU were 4.6pc higher than in the second quarter, but should dip in the next few months, given extensive cuts to blast furnace production and high metallurgical coke inventories.

US third-quarter shipments to India almost trebled year on year to 1.7mn t. Shipments to Brazil were 27.3pc higher on the year, at 1.5mn t.

Shipments to China remained depressed, at just 551,891t in the third quarter, down from 3.35mn t a year earlier.

US coking coal mines'000st
MineQ3±% 2Q±% 3Q21
Table subheader
Buchanan1,19126-12
Greenbrier374-41
Oak Grove49634-24
Beckley234-16-12
Mountain Laurel178-14-34
Leer South413-17295
Leer889-26-14
Shoal Creek21244n/a
Morgan Camp66-5-60
Affinity139-22-37
Paw Paw 2102-17-16
Blue Creek 448034n/a
Blue Creek 71,163-113
Deep Mine 415570-5
Ewing Fork No. 1224-80
Workman Creek449-20-22
Black Eagle2413670
Davy Branch2413240
Lynn Branch No. 2344-512
Rockwell453-15-7
Panther Creek5491850
Hampden125-2615
Kanawha Eagle356-21-20
Madison101-10-26
Cresson15431149
Brush Valley1621723
Crooked Creek163-28-38

Key coking coal exports in September '000t

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29/01/25

Australia’s BCC on track to meet coal sales target

Australia’s BCC on track to meet coal sales target

Sydney, 29 January (Argus) — Australian coal producer Bowen Coking Coal (BCC) is on track to meet its 1.6mn-1.9mn t sales guidance for the year to June 30, but low stockpiles and rail and port access could hinder the target. The Queensland coal producer managed record sales of 544,000t of coal in October-December , but cut its stockpiles to 127,000t on 31 December from 172,000t on 30 September. These stockpiles were the lowest end-of-quarter levels since BCC started producing in late 2022, and might need to be rebuilt in January-June, weighing on sales. Sales could also be impacted by increased vessel arrivals at Dalrymple Bay Coal Terminal, which BCC ships through, and increased wet weather forecast for February-April . BCC is negotiating to secure more port and rail capacity, although it has met its "near-term" requirements. The firm's managed production ran at a rate of about 3mn t/yr run of mine (ROM) in October-December, down from the 5mn t/yr ROM rate it targeted for 2024 in early 2023 , but at the top end of guidance of 2.7mn-3mn t/yr to 30 June. Wet weather in Queensland has seen the premium for top-grade coking coal decline relative to second-tier hard coking coal owing to lower availability, according to BCC. Argus last assessed the premium hard coking coal price at $185/t fob Australia on 27 January at a premium of $34.95/t to lower-grade hard coking coal. This premium is down from an average of $39.24/t for January and $37.52/t for October-December, but above the $24.59/t average in July-September. Non-premium hard coking coal prices fell to a $15/t premium to high-grade thermal coal in early September, before widening to nearly $40/t on 24 January. Thermal coal sales made up 42.5pc of BCC's sales in October-December, with the rest coking coal, up from 40pc in July-September. BCC has the option to swing some production between thermal and lower grades of coking coal but this takes time to implement. Argus last assessed the hard coking coal price at $151.05/t fob Australia on 27 January, down from $157.90/t on 30 December and at the lowest level since June 2021. Argus last assessed high-grade 6,000 kcal/kg NAR thermal coal at $113.85/t fob Newcastle on 24 January, down from $123.44/t on 27 December. By Jo Clarke Bowen Coking Coal (BCC) Oct-Dec '24 July-Sep '24 Oct-Dec '23 Jul-Dec '24 Jul-Dec '23 BCC managed production (kt) ROM 788.8 768.8 785.2 1,557.6 1,425.6 Saleable coal 482.4 443.5 478.7 925.9 1,023.8 BCC sales volumes (kt) Metallurgical coal 312.8 248.8 264.8 561.5 567.4 Thermal coal 231.1 166.0 238.4 397.1 492.4 Total 543.9 414.8 503.2 958.6 1,059.8 BCC's average realised price ($/t) Metallurgical coal 165.8 179.2 210.0 171.7 192.0 Thermal coal 88.5 93.4 100.3 138.1 144.7 Argus average prices ($/t fob Australia) Premium hard low-volatile coking coal 202.6 210.5 333.6 206.5 298.4 Hard coking coal 165.1 185.9 277.0 175.6 250.6 6,000 kcal/kg thermal coal 137.5 138.4 139.8 137.9 147.3 — BCC, Argus Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Poland's JSW met coal mine fire halts operations


22/01/25
22/01/25

Poland's JSW met coal mine fire halts operations

Warsaw, 22 January (Argus) — A fire caused by methane gas ignition at Polish firm JSW's Szczyglowice coking coal mine today has halted longwall operations and left 16 miners injured. The fire occurred at a depth of 805m, JSW said. An investigation team has been set up to assess the accident and determine the future of the affected area, the firm added. Szczyglowice mine has an estimated 185.1mn t of coal reserves and is part of the Knurow-Szczyglowice mining complex, located south of Gliwice city. The mine produces both met coal and thermal coal. Last year approximately two-thirds of its output was met coal and the remainder thermal coal although JSW has been attempting to increase the share of met coal production. Fires and accidents are frequent at JSW mines, having operated at depths reaching 1,300m. Last year the company declared force majeure on coking coal production and slashed planned output by 850,000t after accidents at the Budryk and Pniowek mines in April 2024 and December 2023, respectively The Szczyglowice mine fire may complicate JSW's ambitions to restore its met coal production to 14.5mn t/yr by 2026 from 9.9mn t last year. Stocks of undelivered met coal at Polish coal mines have recovered from a 2024 low of less than 200,000t in August to 364,000t at the end of November last year, similar level as in November 2023, according to the most recent data from the Polish government's ARP mining research firm. By Tomasz Stepien Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Consol, Arch shareholders approve merger


09/01/25
09/01/25

Consol, Arch shareholders approve merger

Houston, 9 January (Argus) — US coal producers Consol Energy and Arch Resources' shareholders today approved the companies' plan to merge. With the shareholder approval taken care of, the coal mining companies expect to their merger to close on 14 January, becoming Core Natural Resources. Consol will own 55pc of the combined company and Arch will have the remaining stake. Consol and Arch have projected Core Natural Resources to have 12mn short tons/yr (10.9mn metric tonnes/yr) of metallurgical coal capacity and 25mn st/yr of high-calorific thermal coal capacity. The merged entity also will house Arch's Powder River basin (PRB) mines, which produced a combined 34.7mn st in the first nine months of 2024 and 62.8mn st in all of 2023, according to the US Mine Safety and Health Administration. Arch and Consol have not specified what they will do with the PRB assets. Arch chief executive officer Paul Lang said in November 2024 that plans for the company's PRB operations are a "tougher discussion", than for plans for its other assets. Arch executives in recent years have talked about shifting away from thermal coal sales, particularly for the PRB. The new entity will have access to two east coast shipping terminals — the Consol Marine Terminal in Baltimore, Maryland and the Dominion Terminal Associates facility, which Arch co-owns with Alpha Metallurgical Resources. Core Natural Resources also will be able to ship to US west coast and the Gulf of Mexico ports. The companies won shareholder approval despite recent stockholder concerns that prompted legal challenges following the announcement of the proposal in August 2024. Three lawsuits were filed against Consol and Arch, and the companies also received demand letters from counsel representing individual stockholders, Consol said in a recent US Securities and Exchange Commission (SEC) filing. The challenges alleged that the joint proxy statement issued by the coal producers contained "false and misleading" statements and omissions. Consol and Arch stated that these allegations were without merit, but on 3 January the companies submitted an 8-K filing with the SEC voluntarily amending the proxy statement "without admitting any liability or wrongdoing" to prevent any delays or adverse impacts to the merger's progress. By Anna Harmon Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Viewpoint: US utilities worry over railcar supply


02/01/25
02/01/25

Viewpoint: US utilities worry over railcar supply

Washington, 2 January (Argus) — US utilities are concerned that they may not have enough railcars to haul coal in the future as multiple power plants are seeking to remain in operation longer than expected. Power demand is forecast to rise in the coming years because of planned data centers in multiple parts of the country. Many data centers are expected to open before new generation, including natural gas, wind and solar-power units, go into service. A number of utilities want to avert the temporary power shortage by extending the life of coal-fired power plants beyond planned retirement dates. In response, demand is "poised to shift to a slight growth in the need for coal cars", according to railcar expert Richard Kloster, president of Integrity Rail Partners. Longer power plant lives as well as expectations of increased metallurgical coal exports are likely to provide demand for equipment. But the supply of railcars for coal has been slowly shrinking. No new railcars for the coal industry — primarily gondolas or open-top hoppers — have been built in nearly a decade. Utilities and leasing companies have had little interest in ordering new railcars for a shrinking sector. Many existing cars have also been scrapped, particularly during periods of low coal demand and high scrap prices during the last few years. There also are thousands of coal railcars in storage, but those do not really count towards demand, Kloster said. The cost of pulling those cars out of storage and making them service-ready is not necessarily cost effective, he said. About 21pc of North American coal cars were in storage at the beginning of August, up from 15pc in November 2022, according to Association of American Railroads data. In comparison, about 35pc of the coal car fleet was in storage at the start of July 2020, near the height of the Covid-19 pandemic. Possibilities of new construction There is a chance that "in the next 10 years, there will be coal cars built again", because many coal cars in the fleet are nearing 50 years of age, Kloster said. The retirement of many cars means that equipment must be pulled from storage or new units built, driving potential construction. Under Association of American Railroads (AAR) rules, railcars built after June 1974 can only be interchanged with other railroads for 50 years. After that, those cars are generally limited to operating on only one carrier. Some of those older cars may be retired early if they need repairs. Maintenance expenses could cause car owners to take units out of service. Utilities strategize Some utilities are already implementing plans to secure railcars, but others think taking additional steps will be unnecessary, according to railcar expert Darell Luther, chief executive of rail transportation firm Tealinc. The differing views are tied in part to whether utilities are regulated by states or merchant-owned, Luther said. Public utilities need to prove to regulators they can meet generating needs, including having enough coal and railcars. Privately owned operators have more flexibility in terms of contracting for coal and railcars. Several utility rail managers told Argus they do not see the need to take extra steps to secure railcars, confident that they already have plenty or can lease whatever they need in the future. But other utilities said they have taken steps to ensure they have coal cars in the future. Some utilities have purchased single or multiple cars as other generators sell them off. Others are increasingly leasing cars, with one utility saying that having more cars than needed is a cheap way of ensuring future supply. By Abby Caplan Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australia’s BCC sells more coal in October-December


27/12/24
27/12/24

Australia’s BCC sells more coal in October-December

Sydney, 27 December (Argus) — Australian coal miner Bowen Coking Coal (BCC) sold 544,000t of coal over October-December, up by 8pc from the same time last year. BCC does not exclusively produce coking coal, despite its name. The company sold 261,000t of non-coking coal over the last three months, accounting for 48pc of its total sales. BCC processes its coal at a handling and preparation plant attached to the Burton Mine Complex. The company used 92pc of the site's current available processing capacity over October-November. BCC moves coal overseas through the Dalrymple Bay Coal Terminal. Exports from the coal hub have been volatile over recent months, growing by 8.8pc on the year in October , before plunging by 13pc on the year in November. Chinese electricity producers bought 7.5mn t of thermal coal from Australian producers in November , 24pc more than the same period last year, in preparation for increased winter power demand. Chinese steelmakers also started preparing to boost production in October, importing 1.3mn t of coking coal over the month, up from 425,000t a year earlier. The country's crude steel exports jumped by 16pc on the year in November. By Avinash Govind Bowen Coking Coal sales kt Type Oct-Dec '24 Oct-Dec '23 Jul-Sep '24 Jul-Sep '23 ROM Coal Production 544* 785.2 768.8 640.3 Sales 544.0 505.0 414.8 554.8 Source: BCC * Oct-Nov '24 production Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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