US coking coal output dips in 3Q

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.

By Brendan Kjellberg-Motton

Key coking coal exports in September '000t