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India and EU lift US met coal exports in 2022

  • Spanish Market: Coking coal
  • 21/03/23

Significantly higher shipments to India and the EU and higher output lifted US coking coal exports in 2022, offsetting a sharp fall in exports to China.

US exports totalled 42.1mn t in 2022, trade data show, 3.2pc higher than a year earlier, while US coking coal output increased by around 3pc, according to Argus estimates.

Russia's invasion of Ukraine in February 2022 and subsequent sanctions imposed on the import of Russian coal triggered a sharp increase in European buying from the US. US shipments to the EU increased by 42.2pc to 15.02mn t in 2022.

Shipments to India increased by 136.7pc to 7.66mn t, as the country's steel output rose by 5.5pc to 124.7mn t.

Shipments to China fell by 76.6pc to 2.42mn t in 2022. Buyers were largely out of the market for US tonnes at the start of the year as mills consumed an estimated 6mn t of stranded Australian coking coal cargoes cleared by customs from October 2021 onwards, and demand for US material remained subdued for the rest of the year as Mongolian and Russian imports covered the bulk of Chinese import requirements. Chinese imports from Russia almost doubled in 2022 to 21mn t.

US shipments to Japan rose by 21.8pc in 2022 to 3.69mn t, largely driven by a period of strong precautionary buying at the start of the Russia-Ukraine war, and by robust demand towards the end of the year as Japanese buyers increasingly turned away from Russian coal.

US coking coal output increased by approximately 3pc to 65-70mn short tons (st) in 2022, according to a survey of mines, accounting for the bulk of US production. A period of then-record high prices towards the end of 2021 boosted mining firms' ability to invest in new capacity, while a period of even higher pricing following the start of the war in Ukraine provided further incentive to maximise production.

Argus' daily fob Australia assessment for premium low-volatile coking coal peaked at $663.80/t on 14 March 2022 while high-volatile A reached a high of $510/t fob Hampton Roads on 17 March last year. A large proportion of US business is priced with linkages to the Australian index.

Major producer Arch's production of high-volatile A coking coal increased by 25.2pc to 6.3mn st in 2022, Mine Safety and Health Administration (MSHA) data show, as the company continues to ramp up its Leer South mine towards its planned 4mn t/yr capacity.

Ramaco increased its production by 20.7pc to 2.68mn st last year after it brought new mines into operation at its Berwind and Knox Creek complexes.

Full-year output at Warrior's Blue Creek 7 mine inched lower by 0.79pc to 47.9mn st, as the company maintained stable production despite the ongoing strike at its operations. But union the United Mine Workers of America has since instructed its members to return to work at Warrior's mines on 2 March, and with Arch and Ramaco still to add more capacity, it is likely that US output will increase again in 2023.

Coronado's production of low-volatile coking coal at its Buchanan mine fell by 11.1pc in 2022 to 4.31mn st, because of disruptions to production in the second quarter.

Blackhawk's production of high-volatile coking coal increased by 7.24pc to 6.22mn t, as the potential for crossover sales into the thermal market at high price levels incentivised higher output at high-volatile mines.

Canadian exports totalled 28.06mn t in 2022, an increase of 6.75pc, boosted by higher shipments to Japan, South Korea and India. Shipments to Japan and South Korea increased by 14.5pc and 14.8pc, respectively, to 6.09mn st and 5.2mn t, while shipments to India increased by 44.8pc to 2.93mn t. These increases offset a fall of 19.3pc in shipments to China, to 7.4mn t.

Key coking coal exports 2022 '000t

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13/09/24

UK High Court rules Cumbria coal mine permit unlawful

UK High Court rules Cumbria coal mine permit unlawful

London, 13 September (Argus) — The UK's High Court has quashed planning permission granted in 2022 for a coal mine in Cumbria, northwest England, ruling the approval was unlawful. The court judgment found the greenhouse gas (GHG) emissions that would result if the coal was burned — known as scope 3 emissions — were not properly considered during the planning process. The proposed mine's developer, West Cumbria Mining, said it would produce a "net zero coal product", using methane capture and abatement, renewable power, "tree planting… and offset of minor residual emissions". But the judgment found the secretary of state at the time, Michael Gove, acted unlawfully in accepting that claim. The UK's Climate Change Act does not allow reliance on international offsets to meet the country's legally-binding carbon budgets. The then-Conservative UK government granted permission for the mine — set to produce metallurgical coal, used in steel production — in December 2022 to West Cumbria Mining. Environmental groups Friends of the Earth and South Lakes Action on Climate Change sought a judicial review, a challenge to the way in which a decision has been made by a public body, focusing on the procedures followed rather than the conclusion reached. The UK's Labour government, elected in July, said it would not defend the planning decision in court. The government will now have to reconsider the planning application, taking into account the "full climate impact", Friends of the Earth said. "West Cumbria Mining will consider the implications of the High Court judgement and has no comment to make at this time", the company told Argus . Today's ruling referenced a landmark June judgment from the UK's Supreme Court, which found that Surrey County Council's decision to permit an oil development was "unlawful because the end use atmospheric emissions from burning the extracted oil were not assessed as part of the environmental impact assessment". The outcome has prompted the UK government to develop new environmental guidance for oil and gas firms . By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Norfolk Southern replaces CEO with CFO


12/09/24
12/09/24

Norfolk Southern replaces CEO with CFO

Washington, 12 September (Argus) — Eastern Class I railroad Norfolk Southern (NS) has appointed a new chief executive, replacing former executive Alan Shaw after determining he violated company policies by having a consensual relationship with the company's chief legal officer. NS' board announced late Wednesday that it had promoted chief financial officer Mark George to replace Shaw. The board said Monday it was investigating Shaw for potential misconduct in actions not consistent with NS' code of ethics and policies, but did not provide details. The railroad yesterday clarified that Shaw's departure was not related to the railroad's "performance, financial reporting and results of operations". Instead, the board voted unanimously to terminate Shaw with cause, effective immediately, for violating policies by engaging in a consensual relationship chief legal officer Nabanita Nag. She was also dismissed by NS. Shaw worked at NS for 30 years and was appointed chief executive in May 2021, following six years as chief marketing officer. Earlier this year he led NS through a proxy fight with a group of activist investors that sought his replacement. The overall effort failed but the challengers secured three seats on the board . The investors had been displeased with the railroad's financial performance and "tone deaf response" to the February 2023 derailment in East Palestine, Ohio . New chief executive George had served as NS' chief financial officer since 2019. Prior to that, he held roles at several companies including United Technologies Corporation and its subsidiaries. "The board has full confidence in Mark and his ability to continue delivering on our commitments to shareholders and other stakeholders," NS chairman and former Canadian National chief executive Claude Mongeau said. By Abby Caplan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Australia’s Newcastle coal ship queue eases


10/09/24
10/09/24

Australia’s Newcastle coal ship queue eases

Sydney, 10 September (Argus) — The shipping queue outside the key Australian coal port of Newcastle shrunk to 22 on 9 September from a two-year high of 41 vessels on 5 August, as throughput at the Port Waratah Coal Service (PWCS) terminals hit a seven-month high in August. The PWCS terminals' shipments rose to 9.09mn t in August from 8.61mn t in July and from 7.6mn t in August 2023, according to PWCS data. This is the most shipped in a calendar month since January. The average vessel turnaround time in August at PWCS eased to 6.95 days from 7.38 days in July but was up from 2.17 days in August 2023. There was a major rail maintenance programme over 3-6 August with none planned for September and the next during 1-4 October. Newcastle Coal Infrastructure (NCIG) does not release data for its terminal at Newcastle, while the Port Authority of New South Wales has not yet released overall data for August. Newcastle shipped 11.96mn t in July, down from 12.28mn t in June. This implies that NCIG shipped 3.35mn t in August, which is the least it has shipped since August 2024 when it also shipped 3.35mn t. Newcastle shipped 85.16mn t during January-July, up from 81.34mn t for January-July 2023, according to port data. By Jo Clarke PWCS coal loading data Aug '24 Jul '24 Aug '23 Jan-Jul '24* Jan- Jul '23* PWCS loadings (mn t) 9.09 8.61 7.60 65.48 60.52 PWCS stocks (mn t) 1.28 2.25 1.39 1.54 1.45 PWCS turnaround time (days) 6.95 7.38 2.17 4.95 2.26 Newcastle ship queue (vessels) 22 41 14 23 11 Source: PWCS * PWCS loadings is a total YTD, all others are average per month YTD Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Order ending Canadian rail work stoppage appealed


30/08/24
30/08/24

Order ending Canadian rail work stoppage appealed

Washington, 30 August (Argus) — A Canadian rail employees union is appealing federal government orders that last week forced the resumption of rail service and sent the union and two railroads to binding arbitration. The Teamsters Canada Rail Conference (TCRC) filed an appeal with the Federal Court of Appeal on Thursday, challenging labour minister Steven MacKinnon's order ending the work stoppage and sending the parties to binding arbitration under the Canada Industrial Relations Board (CIRB). The union also appealed CIRB's 24 August decision upholding that order . "These decisions, if left unchallenged, set a dangerous precedent where a single politician can bust a union at will," union president Paul Boucher said. Canadian Pacific Kansas City (CPKC) declined to comment on the appeal, saying only that "operations continue and recovery is progressing well." Canadian National (CN) did not address the appeal directly but said it is prepared to participate in binding arbitration. "While that process is ongoing, we are focusing on our recovery plan and powering the economy," CN said. MacKinnon's 22 August order ended the work stoppage less than 18 hours after the union launched a strike at CPKC, while CPKC and CN locked out union members . The work stoppage froze ongoing rail operations, even though shipments of hazardous materials and other products had already ceased. The union subsequently notified CN that members would go on strike on 26 August. That strike was averted by the CIRB ruling on MacKinnon's order. By Abby Caplan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Canadian labor board orders rail service to resume


25/08/24
25/08/24

Canadian labor board orders rail service to resume

Houston, 25 August (Argus) — Canada's two Class I railroads avoided a crippling extended work stoppage on Saturday, after an independent labor board upheld the Canadian government's order for the railroads to enter binding arbitration with a labor union representing more than 9,000 rail employees. The Canada Industrial Relations Board (CIRB), in two separate orders, directed the Teamsters Canada Rail Conference (TCRC) to enter binding arbitration with the nation's two Class I railroads — Canadian Pacific Kansas City (CPKC) and Canadian National (CN). The order heads off an extended work stoppage that would have echoed across North American supply chains for virtually all commodities, from crude, refined products, LPG and coal to fertilizers like potash, as well as consumer and industrial goods. Virtually all railed shipments carried by CN and CPKC came to a grinding halt early on 22 August after months-long talks between the railroads and the TCRC hit an impasse. Later the same day, the Canadian government stepped in to force parties into binding arbitration, but the TCRC said it would not abide by the directive without a ruling from the CIRB. In its rulings, the CIRB ordered CN and CPKC employees represented by the TCRC to resume their duties as of 12:01 am EDT on 26 August and remain "until the final binding interest arbitration process is completed". The CIRB also ruled that no further labor stoppages, including lockouts or strikes, could occur during the arbitration process, effectively voiding a TCRC strike notice issued on 23 August for CN workers set to take effect on 26 August. CN and CPKC said they will comply with the CIRB order, and CPKC asked TCRC employees to return to work on 25 August "so that we can get the Canadian economy moving again as quickly as possible and avoid further disruption to supply chains". The TCRC said it would comply with the CIRB decision, even though it sets a "dangerous precedent". TCRC plans to appeal the ruling in federal court. "The ruling signals to corporate Canada that large companies need only stop their operations for a few hours, inflict short-term economic pain, and the federal government will step in to break a union," TCRC president Paul Boucher said. "The rights of Canadian workers have been significantly diminished today." It could take weeks for Canadian rail operations to return to normal. CPKC said it could take several weeks for its rail network to fully recover from the work stoppage and even longer for supply chains to stabilize. Canadian railroads last week embargoed shipments of toxic materials and earlier this week stopped loading any new railcars. By Chris Baltimore Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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