Coal
Overview
Global thermal coal prices surged to record levels in 2022, experiencing unprecedented volatility. Prices have since come off as risks associated with Europe’s supply recede. At a global level, coal demand remains robust with security of supply shifting higher up the agenda of many governments in light of geopolitical upheaval.
In Europe, sanctions have shifted the region’s coal import mix away from Russia and towards other suppliers. The pace of coal plant phase-outs in the region is set to increase in the years ahead, with the role of coal in the electricity mix shifting further towards peak-load usage, making forward planning more challenging.
In Asia-Pacific, thermal coal remains a pillar of the power and industrial sectors. Global coal trade flows and price spreads are shifting, with flows from key suppliers Russia, Indonesia, Australia, South Africa, Colombia, and the US penetrating new markets, in response to price dynamics and trade barriers.
Keeping on top of prices and flows, and how coal markets intersect with other energy and commodity benchmarks, will be critical in the coming years.
Latest coal news
Browse the latest market moving news on the global coal industry.
Upper Mississippi locks closed by high water
Upper Mississippi locks closed by high water
Houston, 3 July (Argus) — High water levels on the upper Mississippi River have caused several lock closures and spurred delays for barge carriers. Lock and Dams (L&D) 12, 16 and 17 on the upper Mississippi River closed 2 July and are expected to remain closed through the rest of this week and possibly into the next, according to the US Army Corps of Engineers. Locks 11, 13, 18 and 20 are expected to close on 4 July. The Corps will likely close locks 14 and 22 on 5 July, while lock 15 is expected to close 6 July. The Corps said the duration of the July 4-5 closures is unclear. Another 2-5 inches of rain fell along the western Corn Belt in the past week, according to the National Oceanic and Atmospheric Administration. High river conditions led to major flood status at Dubuque, Iowa, while other locations along the river are at moderate flooding levels. Water levels are 4-5ft below record highs on the upper Mississippi River. The outdraft at lock and dam 16 was at 211,444 cubic feet per second (cfs) on Tuesday, compared with typical flow of 41,100cfs. Major barge carrier American Commercial Barge Line anticipates 7-10 days of disruption followed by a 2-3 week catch-up. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US services contract in June, signal broad weakening
US services contract in June, signal broad weakening
Houston, 3 July (Argus) — Economic activity in the US services sector contracted in June by the most since 2020 while a report earlier this week showed contraction in manufacturing, signaling a broad-based slowdown in the economy as the second quarter came to an end. The Institute for Supply Management's (ISM) services purchasing managers index (PMI) registered 48.8 in June, down from 53.8 in May. Readings above 50 signal expansion, while those below 50 signal contraction for the services economy. The June services PMI "indicates the overall economy is contracting for the first time in 17 months," ISM said. "The decrease in the composite index in June is a result of notably lower business activity, a contraction in new orders for the second time since May 2020 and continued contraction in employment." The business activity/production index fell to 49.6 from 61.2. New orders fell by 6.8 points to 47.3. Employment fell by 1 point to 46.1. Monthly PMI reports can be volatile, but a services PMI above 49 over time generally indicates an expansion of the overall economy. "Survey respondents report that in general, business is flat or lower, and although inflation is easing, some commodities have significantly higher costs," ISM said. The prices index fell by 1.8 points to 56.3, showing slowing but robust price gains. ISM's manufacturing PMI fell to 48.5 in June from 48.7 in May, ISM reported on 1 July. It was the third consecutive month of contraction and marked a 19th month of contraction in the past 20 months. Wednesday's weaker than expected ISM report, together with a Wednesday report showing initial jobless claims last week rose to their highest in two years, slightly increase the odds that the Federal Reserve may lower its target rate later this year after maintaining it at 23-year highs since last year in an effort to stem inflation. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
South Africa’s new coalition cabinet unveiled
South Africa’s new coalition cabinet unveiled
London, 3 July (Argus) — South Africa's new coalition government has split the energy portfolio from mining and merged it with electricity, shrinking the remit of former mineral resources and energy minister Gwede Mantashe. Responsibility for the merged portfolio has been given to the former electricity minister, Kgosientsho Ramokgopa, who proved successful in alleviating the country's rolling power cuts. On 28 June, state-owned utility Eskom marked around three consecutive months without any power cuts. This compares with 2023, when South Africa experienced its worst year of loadshedding yet. Mantashe, who wields significant political power as chairperson of the African National Congress (ANC), has been assigned a smaller mineral and petroleum resources portfolio. A new ministerial cabinet was announced just over a month after the ANC lost its majority for the first time since it came to power, forcing it to form a government of national unity (GNU) with main opposition party the Democratic Alliance (DA). More parties have since joined, so that a total of 11 parties now form part of the GNU. Contrary to the ANC's previously stated intention to reduce the number of ministers, the new national executive comprises even more "to ensure that [it] is inclusive of all the parties," said ANC leader Cyril Ramaphosa, who was re-elected as president for a second term. "In some instances, we have considered it necessary to separate certain portfolios to ensure that there is sufficient focus on key issues," Ramaphosa said. The Energy Intensive Users Group (EIUG) of South Africa welcomed the establishment of a dedicated electricity and energy ministry, which can exclusively focus on helping Eskom to fulfil its mandate. The appointment of Ramokgopa as minister overseeing the new ministry also bodes well for continuity of plans already in place, the EIUG said. "We hope his broader mandate will expedite the much-needed transformation of the energy and electricity industry." The Minerals Council South Africa (MCSA) welcomed the separation of the minerals and energy portfolios as it will allow Mantashe "to focus on and give urgency to creating the right legislative environment to grow the mining industry," it said. South Africa's attractiveness as a mining investment destination has plummeted over the past decade and the country now ranks among the bottom 10 in the world, according to the Fraser Institute. Regulatory requirements in various departments — such as water, agriculture, forestry, fisheries and environment — must be harmonised to expedite the awarding of exploration and mining rights, the MCSA said. Equally important is the implementation of a mining cadastre, a digital platform to transparently and efficiently manage mineral right applications and licences, it said. Under the new administration, former department of forestry, fisheries and the environment (DFFE) minister, Barbara Creecy, was reassigned as transport minister, while the DA's Dion George was appointed in her place to oversee the DFFE. Former finance minister Enoch Godongwana, under whom South Africa recently achieved its first primary budget surplus in 15 years, was reappointed in the same position. By Elaine Mills Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Australia’s TerraCom misses FY2024 coal sales target
Australia’s TerraCom misses FY2024 coal sales target
Sydney, 3 July (Argus) — Australian thermal coal producer TerraCom has failed to hit its full-year sales guidance for the 2024 fiscal year to 30 June, because of lower sales at its Blair Athol mine. The Blair Athol mine in Queensland state's Bowen basin sold 408,000t for April-June to finish the year at 1.57mn t, below its 1.7mn t guidance. This came because of significant unscheduled downtime occurring on the dragline in mid-June, the firm said on 3 July. This ultimately affected railing its output to port, with the third planned June shipment now to be made in early July, TerraCom said. TerraCom last year slashed its expected thermal coal sales for the year to 30 June 2023 to 1.8mn t from 1.9mn t, because of issues with logistics on the Queensland rail network it uses. TerraCom, which sells Blair Athol coal to Japanese and South Korean energy markets and the Indian sponge iron market, has set a sales guidance for the mine of 1.8mn t for the year to 30 June 2025. By Tom Major Australian thermal coal prices ($/t) Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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