South African coal producer Exxaro Resources' thermal coal exports are expected to pick up 27% year on year to reach 11.6 million tonnes in 2020, said the company's finance director Riaan Koppeschaar.
As lockdown measures to contain the COVID-19 pandemic are eased, demand in international thermal coal market like India and other regions is recovering steadily, and industrial production is also gradually resuming, he added.
Koppeschaar said the recovery of Indian market and reducing coal supply from Indonesia will back thermal coal prices in Asian market in 2021, but he also warned that risks such as the new lockdown measures to curb the second wave of the pandemic and uncertainties in the relations between Beijing and Canberra still exist.
Koppeschaar analyzed that as prices continue moving down, thermal coal suppliers will reduce supply and the market is likely to achieve a balance in the Atlantic ocean shipping market.
Exxaro Resources has raised its 2020 thermal coal production and sales guidance by 1% respectively to 44.93 and 45.50 million tonnes. The production and sales guidance for metallurgical coal are revised up 4% and 12% to 2.32 and 1.12 million tonnes respectively.
(Writing by Shengnan Liu Editing by Tammy Yang)
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