What factors affect Australia's coking coal exports in Apr except weather?

sxcoal.com Viewpoint,  Price,  Coking Coal 2022-05-18 17:03:25

Australia exported 12.45 million tonnes of coking coal in April, down 5% from the previous month, according to the latest Kpler's cargo-tracking data.

Australia mainly exported coal through five ports last month – Hay Point, Gladstone and Abbot Point, Kembla and Newcastle.

Three of these ports are located in Queensland. According to their respective cargo handling, more than 90% of Australia's coking coal exports came from Queensland. Of that, 55% was exported via Hay Point.

Hay Point port is one of the largest coal export ports in the world and consists of two coal export terminals - Dalrymple Bay Coal Terminal and Hay Point Services Coal Terminal.

Kpler's data showed that coking coal exports from Hay Point port were 6.84 million tonnes in April, down 7% from the previous month. During the month, supply was affected as heavy rainfalls flooded mines and infrastructure. Meanwhile, coal miners found it hard to deliver goods due to the adverse weather and the COVID-19-led shortage of labors. As a result, the number of vessels queuing outside the Dalrymple Bay and the Hay Point terminals increased to nearly 40 in April.

In addition, the accident-induced closure of a coal mine owned by Anglo American, a major customer of the Dalrymple Bay coal terminal, also impacted supply.

According to reports, at the end of March, an accident occurred at Anglo American's Moranbah North coal mine in central Queensland, in which a 59-year-old worker died of a serious head injury while working, causing suspension of all mining activities in the mining field. Located in Bowen Basin, Queensland, the mine mainly produces hard coking coal.

This, coupled with the continued impact of the COVID-19 pandemic, Anglo American has lowered its 2022 coking coal export target from 20-22 million tonnes to 17-19 million tonnes.

In April, Australia's coking coal exports overall decreased by 5% month on month. Industry analysts believe that this can also be attributed to high prices and the reduction of panic purchases caused by the conflict between Russia and Ukraine.

Although the price in April has fallen significantly from the previous record level of $670/t, it remained at a high position.

On April 29, the FOB price of Peak Downs coking coal was $518.0/t, and that of mid-volatile premium coking coal in Australia was $481.5/t. The former soared by 376% over the same period last year, while the latter surged 364%. High coal prices have weakened buyers' willingness to purchase to a certain extent.

As the Russia-Ukraine conflicts remain in a stalemate and tend to develop into a protracted matter, the panic purchasing sentiment in the market has weakened. More than one end user was reselling goods and some buyers shifted to a wait-and-see attitude due to the high volatility of the market.

For the short-term outlook, some coal miners may increase production in May-June in order to achieve their annual goals, and demand from major buyers such as India and Japan is expected to remain firm as Australian coal supplies increase.

However, market participants expect that Australia's coking coal exports in May would be constrained by weather factors, with a risk for further decline.

(Writing by Emma Yang  Editing by Tammy Yang)
For any questions, please contact us by inquiry@fwenergy.com or +86-351-7219322.

Share this article
Connect with us

Editor's Pick

1 Indonesian thermal coal prices face downside pressure amid poor demand 2022-06-24

Indonesian thermal coal prices are under downside pressure as the market was muted with a lack of bids and offers after the Chinese domestic market started falling from the beginning of this week.

2 China's thermal coal prices edge lower; hot spell may help market reverse 2022-06-24

China's portside thermal coal market took a pause on June 24 after days of downward correction, yet thin trading liquidity remained in favor of further declines. On June 24, the prevailin

3 S Africa power crisis may intensify due to labor protests 2022-06-24

South African state power company Eskom said on June 24 that electricity cuts could intensify following labor protests at nine of its facilities linked to deadlocked wage talks. Eskom is

4 Henan May raw coal production up 3.2% YoY; power output down 2.2% 2022-06-24

China's central province Henan produced 8.5 million tonnes of raw coal in May, up 3.2% on the year, and the total output declined 2.5% from a year ago to 40.56 million tonnesduring the first fiv

5 Supply Boost | 10 coal mines in Xinjiang approved to raise capacity 2022-06-24

China's state planning agency approved 10 coal mines in Xinjiang to raise production capacity on June 13, to ensure the country's energy security, according to a report by Xinjiang Daily.

6 China's coke prices hard to rebound amid record low steel profit and demand 2022-06-24

China's metallurgical coke prices remained under downside risks, with the primary pressure coming from record low steel profits and demand, which has eroded mills' production enthusiasm and buying app

7 Weekly global coal market news summary (Jun 20-24) 2022-06-24

Australia's Queensland coal royalties hurt coking coal more than thermal coal Australia's Queensland government has announced to raise its royalties on coal from July 1 following a 10-year fr

8 Weekly China coal market news summary (Jun 20-24) 2022-06-24

Infographic | China's coal imports in May 2022 Infographic | China's coal imports in May 2022 Infographic | China's raw coal production by province in May Infographic

9 China Coal Daily Track (Jun 24) 2022-06-24

Thermal coal Production area Downstream users still sat on the sidelines amid softened sentiment, which clearly reduced coal trucks coming to coal mines and drove some miners to undersell cargo

10 Price Cap | China's price controls effectively keep thermal coal prices in check 2022-06-24

For a long time, China's thermal coal prices have been flying high while coal-fired electricity prices have been largely unchanged. Utilities, holding the responsibility to power millions of homes and

Most Read Articles

1 Australia may block coal exports to ease its energy crisis 2022-06-20

Australia may ban coal exports if necessary to ease the country's looming blackouts, according to a Financial Times report on June 17. The government of New South Wales asked coal miners

2 Australia's Queensland increases coal taxes, export prices set to rise 2022-06-21

Australia's Queensland has announced plans to raise royalties on coal companies from July 1to earn revenues and fund investment in the state's healthcare sector, The Guardian reported.

3 Australia's Queensland coal royalties hurt coking coal more than thermal coal 2022-06-22

Australia's Queensland government has announced to raise its royalties on coal from July 1 following a 10-year freeze, with the top tier increasing to A$300/t for 40% royalties charge from the current

4 Can Indonesia fulfill Germany's additional 150 Mt demand? 2022-06-22

The news that Germany approached Indonesia for thermal coal procurement in place of Russian imports has been reported with the fanfare, but does Indonesia have the ability to cover the "surprising" de

5 Review: China May coal imports retreat; Mongolia ranks 1st in coking coal supply 2022-06-21

China imported 20.55 million tonnes of coal and lignite in May, retreating by 12.74% from the preceding month and down 2.34% from a year ago. From January to May, a total of 95.91 million tonnes of co

6 Review: China May thermal coal imports hit another low; Russian intakes jump 2022-06-22

China's thermal coal imports in May hit the lowest level of the same month since at least 2012. Coal imports from Indonesia slumped on a monthly basis, while Russian coal delivery surged.

7 Indonesia to impose carbon tax on coal plants next month 2022-06-22

The Indonesian government will collect carbon tax from coal-fired power plants from July 1, 2022, as a trial run to roll out the carbon tax policy on all emission-intensive sectors. The c

8 Indonesia has no plans to boost coal production despite more demand 2022-06-23

Indonesia has no plans to enhance its coal output despite Europe's interest in purchasing from the archipelago as an alternative to Russia, according to a government official. "There is n

9 What's behind recent price declines in China's thermal coal market? 2022-06-23

China's thermal coal prices are falling at a time when the heatwave drives up coal consumption to power more air conditioners at homes and businesses. Why does the downward correction take place?

10 Infographic | China's coal imports in May 2022 2022-06-21

Infographic | China's coal imports in May 2022