Newcastle coal exports rebound despite China ban
Newcastle coal shipments rebounded in December, despite no exports flagged as heading to China from the Australian port and one of the two shiploaders at the Newcastle Coal Infrastructure (NCIG) terminal remaining out of action.
The two Port Waratah Coal Services' (PWCS) terminals at Newcastle shipped 10.96mn t in December, up from 7.46mn t in November and 10.78mn t in December 2019, according to PWCS data. December was a record-high shipping month for PWCS, as it worked to compensate for lost shipments out of NCIG because of the ongoing closure of one of the two shiploaders at the terminal. There is still no confirmed restart date for the second NCIG shiploader.
Total shipments from Newcastle of around 14.4mn t rose from 11.35mn t in November but were down from 15.48mn t in December 2019, according to initial shipping data collated by Argus. Shipments to China fell to zero from around 430,000t in November and 4.13mn t in December 2019. The December figures include 3.3mn t of exports that have an unconfirmed destination, but only 150,000t of the initial 1.6mn t of November shipments with unconfirmed destinations remain and none of the resolved November shipments ended up in China.
PWCS shipped just 9pc of its coal exports to China in 2020, according to the firm. It shipped 17.5pc to China in 2019, according to PWCS data.
Beijing's relationship with Canberra has worsened since China banned imports of Australian coal in October. Australian coal mining firms had hoped that a new quota would open in 2021 allowing more exports to China but this was not reflected in the shipping data out of Newcastle or the Queensland coal port of Gladstone.
The ship queue at Newcastle rose to a high for 2020 of 30 in December, up from 28 a month earlier, as demand from other key nations offset the decline in shipments to China. Japanese buyers had a particularly strong December, although exports to Japan were down in 2020 compared with 2019, as they were for exports to South Korea and Taiwan. The decline in these key markets and China was partially offset by increased shipments to India, Pakistan and southeast Asia in 2020 compared with 2019.
Argus last assessed high-grade Australian thermal coal at $81.44/t fob Newcastle for NAR 6,000 kcal/kg on 31 December, up from $70.33/t on 4 December and a low of $46.18/t on 4 September. It assessed lower-grade coal at $52.99/t fob Newcastle for NAR 5,500 kcal/kg on 31 December, up from $46.89/t on 4 December and $35.04/t on 4 September.
The heat-adjusted premium on a NAR 6,000 basis for higher-grade thermal coal increased to $23.63/t on 31 December from $19.18/t on 4 December and $8.65/t at the end of August.
Shipments of semi-soft coking coal accounted for around 12pc of PWCS' total. The semi-soft mid-volatile coking coal price had been stable at around $71.20/t for most of December, according to Argus' assessment.
| Newcastle's coal shipments | mn t | ||||
| Period | China | Japan | South Korea | Taiwan | Total |
| Dec '20 | 6.50 | 2.15 | 1.33 | 14.40 | |
| Nov ' 20 | 0.43 | 5.13 | 2.20 | 0.95 | 11.35 |
| Dec '19 | 4.13 | 5.75 | 2.93 | 1.48 | 15.48 |
| Total 2020 | 27.55 | 65.43 | 22.95 | 20.95 | 160.03 |
| Total 2019 | 38.18 | 66.30 | 23.33 | 22.00 | 165.60 |
| Source: Initial shipping data collated by Argus | |||||
Related news posts
Vietnam’s Vinacomin to boost coal imports
Vietnam’s Vinacomin to boost coal imports
Singapore, 25 September (Argus) — Vietnamese coal producer Vietnam National Coal and Mineral Industries (Vinacomin) plans to more than double its thermal coal imports over the next six years to meet an anticipated growth in demand. The state-owned company, which meets most of Vietnam's coal requirements, aims to lift imports to 12.6mn t this year and to 14.5mn t in 2025, and increase its receipts of seaborne thermal coal to 22mn t in 2030, a senior official from the firm told Argus on 25 September. It imported 9.2mn t of coal in 2023. The move to raise imports comes as Vinacomin wants to raise its blended coal supplies to utilities, because it is the key supplier to local coal-fired power plants. Vinacomin typically blends its domestic coal with imported thermal coal to meet utility requirements as anthracite accounts for most of the locally produced coal, and is not preferred by plants for direct use given its low volatile matter content. Vinacomin is also a key supplier of coal to industries such as steel and cement. The coal import plans support Vietnam's overall coal import outlook at a time when the country's seaborne coal receipts are set to reach an all-time high in 2024. Vietnam has imported 45.86mn t of all types of coal in the first eight months of the year, up by about 33pc from a year earlier, according to its customs data . The country could end up importing close to 69mn t of coal this year at the current average rate of 5.73mn t/month, according to Argus calculations, marking Vietnam's highest annual imports since the 55mn t of coal it received in 2020. The imports could reach about 73mn t by 2030 and rise further to peak at around 85mn t in 2035 , according to the government's latest national energy master plan released last year. Vinacomin's strategy to grow imports also comes as Vietnam's domestic coal output has remained rangebound and sluggish. Vinacomin has set a target to produce 37.4mn t this year, up from 36.8mn t it produced last year. Domestic coal output growth faces challenges as there is no near-term plan to explore the Red River delta, which accounts for nearly 86pc of Vietnam's total coal reserves of 48.9bn t. Coal mining in the belt could be ecologically sensitive as the bulk of the land is used for agriculture, while coal projects in the region could also be economically unviable. Vinacomin in 2024 is seeking imported coal with calorific value of NAR 4,800-5800 kcal/kg coal of low and mid-volatile matter coal, with typical sulphur content of 0.6pc to aid its blending efforts, the official said. Vinacomin buys the bulk of the coal via tenders and it refers to international coal indices including Argus' ICI index for Indonesian coal as well as the API index for non-Indonesian coal. By Saurabh Chaturvedi Vinacomin's thermal coal import plan (mn t) Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Draught limits tighten on lower Mississippi River
Draught limits tighten on lower Mississippi River
Houston, 23 September (Argus) — The US Coast Guard (USGC) placed further restrictions on traffic on the lower Mississippi River as water levels continue to deteriorate. The USCG on 22 September announced that all northbound traffic cannot have draught deeper than 9.5ft from Tunica, Louisiana, to Greenville, Mississippi. For Greenville to Tiptonville, Mississippi, barges must remain above a 9ft draught, the shallowest draught channel allowed for the lower Mississippi River by the US Army Corps of Engineers. All northbound transit also cannot load more than four barges wide or configure more than five barges wide. Southbound traffic from Tiptonville to Greenville cannot be more than six barges wide or deeper than 9.5ft. Greenville to Tunica southbound barges can load as deep as 10ft but cannot be more than seven barges wide. All locations between Cairo, Illinois, and Greenville fell back to their low water threshold over the weekend as rainfall from Hurricane Francine flowed down the river. More grain has moved downriver this year compared with last year as the US Department of Agriculture (USDA) expects higher US grain exports in the 2024-25 marketing year. Around 367,000 short tons of grain moved for the week ended 14 September, which is about double the same period a year earlier, the USDA said. Both south and northbound movement is expected to see a heavier pace in October. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Japan pushes abatement approach to energy transition
Japan pushes abatement approach to energy transition
Tokyo, 23 September (Argus) — Japan is keen to promote its energy transition approach, focused on carbon abatement technologies, to the wider coal-reliant Asia-Pacific region. The country has accelerated development of carbon abatement technologies to keep fossil fuels in its energy mix and boost energy security and economic growth. Japan, with its G7 counterparts, pledged to phase out "unabated" coal-fired plants by 2035, or "in a timeline consistent with keeping a limit of a 1.5°C temperature rise within reach, in line with countries' net zero pathways". This is a major step for Japan, a resource-poor country. But legislative progress aimed at developing value chains for carbon capture and storage (CCS) and cleaner fuels, such as hydrogen and ammonia, might have encouraged Tokyo to commit, especially since the G7 text allows for some wiggle room. To ensure continued use of its abated thermal power plants, trade and industry ministry has requested ¥11.2bn ($79mn) to support CCS projects, including exploration of CO2 storage sites, for 2025-26, up sharply from the ¥1.2bn budgeted for 2024-25. Japan has yet to set a date to achieve the phase-out target. But it had already promised not to build new unabated coal-fired plants at last year's UN Cop 28 climate talks, while pledging to phase out "inefficient" coal-fired plants by 2030. Less than 5pc of Japan's operational coal fleet has a planned retirement year, according to analysis by Global Energy Monitor, and these might comprise the oldest and least efficient plants. Coal capacity built in the last decade, following the Fukushima-Daiichi nuclear disaster, is unlikely to receive a retirement date without a countrywide policy that calls for a coal exit. Japan's coal demand could decline, to some extent, under global divestment pressure. But the fuel remains key, as the government sees renewables and nuclear as insufficient to meet rising power demand driven by the growth of data centres needed to enable artificial intelligence. Continental divide The country is keen to extend its vision for "various" and "practical" pathways, including abatement technologies, to coal-reliant southeast Asia. This stems from Tokyo's sceptical view about promoting a more European approach to the energy transition — driven by wind and solar power — to Asian countries. Japan stresses the importance of more diversified pathways, including thermal power with abatement. The country aims to spur decarbonisation in Asia-Pacific through a platform called the Asia Zero Emission Community (Azec) initiated in 2022. Asia-Pacific accounts for more than half of global greenhouse gas (GHG) emissions, at 17.178bn t of CO2 equivalent, according to the IEA. In Jakarta last month, 11 Azec countries emphasised the need to co-operate "to decarbonise coal power generation". The platform sets out options such as biogas, hydrogen and ammonia, and retrofitting with CCS and carbon capture, utilisation and storage. Japan's industries have already committed to carbon abatement at coal-fired plants in Asia, leveraging their technological know-how. Tokyo has pledged to provide about $70bn to support decarbonisation globally. This funding is part of wider financial assistance to help mobilise the estimated $28 trillion that Asia requires. To secure the funding, Japan has already issued part of a $139bn climate transition bond and aims to strengthen the financial support through the Asia Zero Emission Centre, the latest Azec initiative, under which transitional finance will be studied further, a trade and industry ministry official told Argus . Japan is on track to reduce its GHG emissions by 46pc by the April 2030-March 2031 fiscal year from its 2013-14 level, and hit its net zero emissions goal by 2050. By Motoko Hasegawa and Yusuke Maekawa Japan CO2 emissions by sector Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
ADB grants Indonesia $500mn energy transition loan
ADB grants Indonesia $500mn energy transition loan
Singapore, 23 September (Argus) — The Asian Development Bank (ADB) has approved a $500mn loan to support Indonesia's energy transition through the Affordable and Sustainable Energy Transition programme. The programme aims to establish a policy and regulatory framework for a clean energy transition, strengthen sector governance and financial sustainability, and ensure a just transition towards net zero. Indonesia has set a target to reach net zero by 2060, but is heavily reliant on fossil fuels, which accounted for 80GW, or 86pc of total power generation capacity in 2023, according to a report by energy think-tank Ember. The country's renewable growth capacity has also been slow, with only 3.3GW of renewables added over 2018-23, bringing the total share of renewables to 13GW as of 2023. On the contrary, the country added 26GW of fossil fuel capacity over the same period, according to Ember. "This policy-based loan programme supports Indonesia's foundational and co-operative policy development to identify and address the sector's complex challenges to accelerate its shift towards sustainable energy," the ADB's country director for Indonesia, Jiro Tominaga, said. One of the main measures of the programme is to develop a Comprehensive Investment and Policy Plan (CIPP). A draft CIPP was published in November last year and it serves as a framework for the Just Energy Transition Partnership (JETP). Indonesia in 2022 entered the JETP, a financing mechanism through which it is supposed to receive $20bn from international partners like the US, EU, Japan and Canada to phase out coal and increase the share of renewables in its energy mix. But the JETPs have been long on promise and short on implementation, and need to be scaled up to be effective, according to a research report . Indonesia could need up to $12 trillion until 2050 to finance its energy transition away from coal , and the lack of additional financing could slow down the uptake of cleaner energy. Other measures under the programme include regulatory improvements to scale up renewable energy capacity and initiatives to strengthen the capacity and governance of state-owned energy firms. The ADB is working with French public financial institution Agence Francaise de Development and the German Development Co-operation through German bank kfW as co-financing partners "to support the government's leadership in energy transition," the ADB said. More details on how the funds will be used were not disclosed. The Asia-Pacific region holds significant investment opportunities in the energy transition. It needs at least $1.1 trillion/yr in climate financing, but actual investment falls short by at least $815bn/yr . The ADB estimated its investments in the region to have amounted to $10.7bn in 2023. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more