The key Australian thermal coal port of Newcastle is preparing to cease shipping activity if a blockade of the port by climate change activists occurs during 25-26 November.
The People's Blockade programme, which is organised by activist group Rising Tide, will run during 24-27 November, with a flotilla designed to block the shipping channel on 25 November and other protests planned for 26 November. The Port of Newcastle is prepared to stop all shipping movements if the blockade causes safety concerns. This could affect all cargoes, with the port also exporting wheat, metal concentrates and aluminium from the Tomago smelter and importing fuel, fertiliser, petroleum coke and steel.
Rising Tide is demanding that all coal exports stop from Newcastle by 2030, that Australia's federal government immediately stop approving all new fossil fuel projects and that fossil fuel export profits be taxed at a rate of 75pc.
Newcastle is Australia's largest exporting port for thermal coal. Increased sales to China in October saw shipments hit a 14-month high, after weak demand for higher grade coal and a slow recovery from flooding in 2022 saw January-October exports track below the decade-low in 2022.
There were seven cargo ships inside the port and 14 queuing off Newcastle on 23 November, up from nine at the end of October. There is a chance of a thunderstorm and strong winds on 25 November, when the blockade is scheduled, according to the Australian Bureau of Meteorology.
Around 11pc of Newcastle's coal exports are semi soft coking coal, with the remainder thermal coal.
Argus last assessed the high-grade 6,000 kcal/kg NAR thermal coal at $124.46/t fob Newcastle on 17 November, down from $156.51/t on 1 September. It assessed the 5,500 kcal/kg NAR price at $94.05/t fob Newcastle on 17 November, down from a recent high of $105.47/t on 13 October but up from $84.24/t on 1 September.
