Australia's metallurgical coal exports are forecast to increase from 171 million tonnes in the fiscal year 2020-21 to 186 million tonnes in the FY 2022-23, and exports value is expected to rebound from $23 billion to $30 billion, showed data from the Resource and Energy Quarterly issued by the Office of the Chief Economic, Department of Industry, Science, Energy and Resources of Australian government.
With the recovery of industrial activities, market sentiment has been improving in recent months, yet global metallurgical coal production and transportation remained restrained by the COVID-19 pandemic and related restrictions, making it difficult for the supply to meet the recent rapid growth in demand. Under the background of short supply, global metallurgical coal prices have repeatedly broken records.
The global supply chain has now been reorganized, with the rising demand from India, South Korea, Japan and Europe offsetting the impact of China's import ban. The price of met coal in Australia has rebounded significantly, and accumulated stockpiles caused by China's import restrictions have also been basically depleted.
Due to the impact of the pandemic coupled with China's restrictions on the import of Australian coal, the largest met coal exporter saw its exports decline 3.5% year on year to approximately 171 million tonnes and the export value fell 31.8% to around A$23.4 billion.
However, the export revenue of met coal in Australia is expected to increase further in anticipation of more imports during the FY 2022-23.
In addition, Australia's met coal supply is expected to soon be supported by the expansion of the Russell Vale coal mine of Wollongong Coal Limited. The mine had received environmental permits on its expansion plan in early September.
Australia's met coal production is expected to increase from 170 million tonnes in FY 2020-21 to 192 million tonnes in FY 2022-23.
(Writing by Emma Yang Editing by Harry Huo)
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