Australian Coal Price

Australian coal exports set to rise

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By Elizabeth Cope | World Coal

According to a report by the International Energy Agency (IEA), Australia’s coal exports are expected to rise over the next 5 years on the back of growing demand from Asia.

The report, published by the IEA on 17 December, found that demand for coal in India could rise by 4.6% by 2024 and by 5% in Indonesia and Vietnam. As a result, Australia’s total coal production is expected to rise 1.4% annually from 409 million t in 2018 to 444 million t in 2024.

Coal exports were worth an estimated AUS$67 billion (US$45.9 billion) to the nation’s economy in the 2018 – 2019 financial year, overtaking iron ore as the most valuable export.

The IEA found that while the reliance on coal as a power source could fall between 2018 – 2024, Australia’s share of the global export market is set to rise.

Matt Canavan, Australia’s Minister for Resources, said that the report supported the need for new coal mines in New South Wales and Queensland. He commented: “We will need more than Adani,” referring to the Carmichael coal mine in Queensland’s Galilee Basin…Full Story

Thermal Coal Update 19 June 2019

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There wasn’t a great deal of activity in the Asian markets today, as most market participants wait to see if next weeks coal conference in Bali will shed some light on the direction of the market.

Indonesia

The heavy flooding in Kalimantan continues to have an impact on coal cargos from Indonesia, which are still delayed as the damage caused by the heavy rains is repaired.

Offers for 3800NAR were heard at $38.00/mt for geared and grabbed panamax loading in July.

A bid for 3700NAR was heard at $34.65 for a July Supramax

Australia

Not much activity in the Newcastle physical coal market today, although an for an August loading cargo of 6000NAR was heard at $70.00 in 55kt.

Jul loading capes are seen valued at $51.00/mt for high ash 5500NAR material, by Chinese buyers. Sellers are not biting and continue to hold for higher prices around $53-$54.00/mt.

China

McCloskey reports that there, “was a lot of talk today about a notice distributed to all ports by customs reminding them of their duty to pay attention to the “quality” of coal imports.”

A cape of Colombian material was heard at $63.00 Bid // 65.50 Offered for 5500NAR CFR Chinese ports.

South Africa

South African 5,700 kc NAR is valued around API4 minus $4.00/t for July and minus $4.50/t for August loading cargoes.

Due to falling paper prices however, translations for what this means on a fixed-price basis show softer prices, with July at around $57.45/t FOB, basis 4,800 kc NAR

Discounts for 5,500 kc NAR shipments are valued at API4 minus $7.50/mt for July minus $7.50/mt August loading. On a fixed price basis this is approximatley $49.25/t FOB for July Loading cargoes.