Rail exports of Russian coal improve

Russian coal shipments for export fell slightly in April from March but were 5.5pc above the same period last year, reflecting higher supplies to ports amid firmer demand from customers in Europe and southeast Asia. Export growth could reflect attractive prices for Russian coal and other origins after falling at the beginning of this year.

Russian coal deliveries by rail to northwestern ports increased by 10.1pc to 4.9mn t, while rail exports through far eastern ports increased by 7.9pc to 7.5mn t. Exporters boosted flows to southeast Asia through all the major ports in the far east, including Vostochny and Nakhodka, rail data show.

Supplies of Russian coal have increased in May, as demand in Europe shows the first signs of recovery and deliveries to Asia-Pacific remain strong after several spot sales in previous months.

Coal shipments to far eastern ports stood at 246,000 t/d on 1-15 May, up by 4.2pc on the year. And deliveries to northwestern ports over the period stood at almost 166,000 t/d, up by 5.7pc on the year.

Shipments to Russian southern ports were 1.3mn t in April, almost 65pc higher than a year earlier amid higher supplies to some ports including Novorossiysk, Rostov, Tuapse, Yeysk and Azov. Supplies to southern ports rose by 50pc on the year to 48,000 t/d in the first half of May.

Overland rail exports were 10pc higher on the year at 3.3mn t. This was a result of rising overland shipments to China reflecting strong demand for imported coal in the country on the limited supply of Australian origin. But deliveries to Poland were 7pc lower from March and down on the year, as the country remained oversupplied with Russian coal, while demand was relatively low on the month and some way below last year.

Find more news, price information and market analysis on Russian coal exports in Argus Russian Coal report.