Australia exports record high thermal coal to India
Australia exported record high volumes of thermal coal to India in April, as changing trade flows reflect Beijing's ban on imports of Australian coal.
Australia's thermal coal exports of 15.24mn t in April increased by 14pc from the eight-year low in March but declined by 7pc from April 2020, according to data from the Australian Bureau of Statistics (ABS) supplied through GTT.
There were no shipments to China for the fourth consecutive month, with initial shipping data suggesting this continues into early June. Shipments to Vietnam have also declined this year, and together these two factors have lowered January-April total shipments by 10pc on the year.
This decline has been partially offset by increased shipments to India, South Korea, Taiwan and Japan in January-April. The higher shipments to South Korea, Taiwan and Japan are related to lower than average coal buying in the first half of 2020 following Covid-19 shutdowns that slowed industrial activity.
India, which is in the midst of a Covid-19 surge, has more than compensated for lower imports in the first half of 2020 and Australian exports to the nation hit a record high of 2.46mn t in April. This may reflect a larger than average discount for low grade 5,500 kcal/kg NAR Australian coal export prices compared to similar grade South African export prices in April. This premium widened in early to mid-May but has since shrunk.
Australian exports continued to move to smaller markets for its coal such as Indonesia, Thailand, the Netherlands, Malaysia, United Arab Emirates, the Philippines and Pakistan, as suppliers continue to look to diversify in response to Beijing's import ban.
The Argus Newcastle 6,000 kcal/kg price averaged $91.32/t fob Newcastle in April, up from $88.88/t in March and from $60.31/t in April 2020. It was assessed at $115.47/t on 28 May and averaged $97.26/t in May.
The Argus Newcastle 5,500 kcal/kg price averaged $57.21/t fob Newcastle in April, up from $55.73/t in March and from $49.09/t in April 2020. It was assessed at $65.40/t on 28 May and averaged $56.45/t in May.
The price differential, not adjusted for heat, between the Argus Newcastle 6,000 kcal/kg and 5,500 kcal/kg prices averaged $34.11/t fob Newcastle in April, up from $33.15/t in March and from $11.22/t in April 2020
Australia's average thermal coal export price was $73.07/t in April, up from $71.43/t in March and from $62.45/t in April 2020, according to the ABS.
The April prices were based on the US-Australian dollar exchange rate of $0.7703 used by the ABS for the month. This was in line with March, but up from $0.6298 in April 2020.
Australian thermal coal exports | mn t | ||||
Destination | Apr | % ± vs Mar | % ± vs Apr '20 | Jan-Apr | % ± vs Jan-Apr '20 |
Japan | 5.4 | -2.8 | 7.6 | 25.0 | 2.2 |
South Korea | 2.2 | -11.9 | 7.1 | 10.1 | 19.1 |
Taiwan | 2.1 | 2.2 | 4.0 | 8.0 | 10.2 |
India | 2.5 | 138.2 | 906.3 | 6.7 | 335.5 |
Vietnam | 1.4 | 1.9 | -44.4 | 2.6 | -42.6 |
Total | 15.2 | 13.6 | -6.7 | 68.3 | -10.5 |
Source: ABS, GTT | |||||
Total includes all destinations not just those listed |
![](https://public-assets.argusmedia.com/2021/06/03/australiaexports103062021022458.jpg)
![](https://public-assets.argusmedia.com/2021/06/03/australiaexports03062021022506.jpg)
Related news posts
US-Australia’s Coronado to lift coal sales
US-Australia’s Coronado to lift coal sales
Sydney, 25 July (Argus) — US-Australian coal producer Coronado Coal will boost coal sales during July-December despite logistical challenges, as it maintains its output guidance of 16.4mn-17.2mn t for 2024. The firm sold 7.8mn t of coal during January-June, leaving it a target of 8.6mn t for July-December to meet the bottom of its 2024 guidance . It has maintained this guidance despite warning that shipments from its Australian Curragh mine will be affected by a two-week rail disruption from the end of July . Coronado operates the Curragh mine in Queensland and two mining complexes in the US' Virginia. All produce coking and thermal coal. Coronado's revenues were supported during April-June compared with January-March by a smaller discount for pulverised injection coal (PCI) against hard coking coal prices, which saw the PCI price rise while other metallurgical coal prices were under pressure. Its sales prices will remain strong in July-September, forecasts chief executive Douglas Thompson, on restocking in India and the rail disruption in Queensland, as well as the fire at Anglo American's Grosvenor mine that will disrupt Australian exports. Thompson warned that there was some downside risk of $5-10/t to Australian PCI pricing but if this was realised it will see China restart buying from Australia. In the long term he expects more competition from Russia-origin PCI, as Russian coal producers find new routes to the seaborne market and regain market share lost because of an European embargo. The premium for premium hard coal prices over PCI coal prices has shrunk to around $30/t from $145/t over the past six months. Argus last assessed the premium hard low-volatile price at $224/t fob Australia on 24 July and the PCI low-volatile price at $193.65/t. Coronado's group sales volumes were up 8.3pc to 4.1mn t in April-June compared with January-March , reflecting higher sales from its Australian and US operations. The increase in volumes combined with reduced need to remove waste materials allowed Coronado to cut is mining costs by 27.5pc from the previous quarter to an average of $91.10/t of coal sold. The firm expects costs to fall further in July-December as it demobilises more of its mining fleet at its Curragh mine. This reflects reduced waste removal and should have no impact of coal production at Curragh, Thompson said. Production at Curragh should increase in the second half of 2024, with 100,000t of coal production deferred from June to July because of heavy rainfall. By Jo Clarke Coronado Coal (mn t) Apr-Jun '24 Jan-Mar '24 Apr-Jun '23 Jan-Jun '24 Jan-Jun '23 Sales (mn t) Australia (Curragh) 2.7 2.5 2.5 5.2 4.7 US 1.4 1.2 1.5 2.6 3.0 Total 4.1 3.7 4.0 7.8 7.6 Sales data % coking coal of total sales 81.0 78.7 76.0 79.9 75.3 Australian realised met coal price (fob) ($/t) 216.2 225.2 237.7 220.5 239.7 US realised met coal price (for) ($/t) 161.7 170.9 196.0 166.0 215.5 Source: Coronado Australian coal price comparisons ($/t) Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Australian coal rail line to shut for 2 weeks: Coronado
Australian coal rail line to shut for 2 weeks: Coronado
Sydney, 25 July (Argus) — The Blackwater rail line in Queensland, Australia will be closed for up to two weeks because of maintenance, which will restrict coal deliveries to the key port of Gladstone. The maintenance program will run from late July to early August, coal mining firm Coronado said on 25 July. This is limiting metallurgical supply from Queensland and pushing up the price of pulverised coal injection (PCI) coal relative to Australian premium low-volatile coal, it added. The two-week shutdown was planned before Coronado released its 16.4mn-17.2mn t saleable coal guidance for 2024 , which it still expects to reach despite a week-long outage on the Blackwater line in June-July following a collision . Shippers appear prepared for the reduction in shipping from the 102mn t/yr Gladstone port over the next couple of weeks, with just 12 ships queued outside the port on 25 July, down from 23 on 6 June and below-average queues of around 20. Coal is delivered to Gladstone through the 100mn t/yr capacity Blackwater rail line and the 30mn t/yr capacity Moura line, both of which are operated by Australian rail firm Aurizon. Gladstone's shipments fell by 9.5pc in June compared with a year earlier, partly because of rail constraints. Around two-thirds of Gladstone's coal shipments are metallurgical coal and a third are thermal. A fire at UK-South African mining firm Anglo American's Grosvenor mine already hit Australian metallurgical coal exports, which led the firm to cut its 2024 production guidance to 14mn-15.5mn t from 15mn-17mn t. The premium for premium hard coal prices over PCI coal prices has shrunk to around $30/t from $145/t over the past six months. Argus last assessed the premium hard low-vol price at $224/t fob Australia on 24 July, with the PCI low-vol price at $193.65/t. Aurizon and Gladstone Port were contacted for comment, but have yet to respond at the time of writing. By Jo Clarke Australian coal price comparisons ($/t) Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US House passes waterways bill
US House passes waterways bill
Houston, 23 July (Argus) — The US House of Representatives overwhelmingly approved a bill on Monday authorizing the US Army Corps of Engineers (Corps) to tackle a dozen port, inland waterway and other water infrastructure projects. The Republican-led House voted 359-13 to pass the Waterways Resources Development Act (WRDA), which authorizes the Corps to proceed with plans to upgrade the Seagirt Loop Channel near Baltimore Harbor in Maryland. The bill also will enable the Corps to move forward with 160 feasibility studies, including a $314mn resiliency study of the Gulf Intracoastal Waterway, which connects ports along the Gulf of Mexico from St Marks, Florida, to Brownsville, Texas. Water project authorization bills typically are passed every two years and generally garner strong bipartisan support because they affect numerous congressional districts. The Senate Environment and Public Works Committee unanimously passed its own version of the bill on 22 May. That bill does not include an adjustment to the cost-sharing structure for lock and dam construction and other rehabilitation projects. The Senate's version is expected to reach the floor before 2 August, before lawmakers break for their August recess. The Senate is not scheduled to reconvene until 9 September. If the Senate does not pass an identical version of the bill, lawmakers will have to meet in a conference committee to work out the differences. WRDA is "our legislative commitment to investing in and protecting our communities from flooding and droughts, restoring our environment and ecosystems and keeping our nation's competitiveness by supporting out ports and harbors", representative Grace Napolitano (D-California) said. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US House to vote on waterways bill
US House to vote on waterways bill
Houston, 22 July (Argus) — The US House of Representatives is expected to vote on 22 July on a waterways bill that would authorize new infrastructure projects across ports and rivers. The Water Resources Development Act (WRDA) is renewed typically every two years to authorize projects for the US Army Corps of Engineers (Corps). The bipartisan bill is sponsored by representative Rick Larsen (D-Washington) and committee chairman Sam Graves (R-Missouri). The full committee markup occurred 26 June, where amendments were added, and the bill was passed to the full House . A conference committee will need to be called to resolve the different versions of the bill. The major difference between the bills is that the House bill does not include an adjustment to the cost-sharing structure for the lock and dam construction and other rehabilitation projects. The Senate Committee on Environment Public Works passed its own version of the bill on 22 May, with all members in favor of the bill. The House version of the bill approves modifications to the Seagirt Loop Channel near the Baltimore Harbor in Maryland, along with 11 other projects and 160 feasibility studies. One of these studies is a $314.25mn resiliency study of the Gulf Intracoastal Waterway, which connects ports along the Gulf of Mexico from St Marks, Florida, to Brownsville, Texas. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
![](/_next/image?url=%2F-%2Fmedia%2Fproject%2Fargusmedia%2Fmainsite%2Fimages%2F14-generic-hero-banners%2Fherobanner_1600x530_generic-c.jpg%3Fh%3D530%26iar%3D0%26w%3D1600%26rev%3D-1%26hash%3DFC2BEDE406483FEF5FDB9549159BAC11&w=3840&q=75)
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more