US thermal coal exports rose by 32pc on the year in May owing to firm Indian demand, US census data show.
Exports to India reached 1.1mn t in May up by 117pc from 510,000t in the same month a year earlier. US exports to India are typically NAPP NAR 6,900 kcal/kg coal for the brick kiln and cement industries.
But for August-loading cargoes, US petroleum coke remains more competitive than coal for Indian buyers, despite a recent increase in coke prices The price of cfr India 6.5pc sulphur coke increased to $3.57/mn Btu on 10 July from an average $3.43/mn btu in June, according to Argus' calculations
This compares with $4.21/mn Btu for high-sulphur Illinois Basin coal, and $4.59/mn Btu for delivered NAPP coal.
In India, 6.5pc sulphur coke prices were proportionally 76pc of NAR 6,000 kcal/kg coal on 5 July, compared with 84pc on 24 May and 97pc on 9 March. A year earlier, coke prices were proportionally 59pc of coal prices.
Exports to northwest Europe increase
US exports to the Netherlands and Germany — the main buyers in Europe — totalled 730,000t in May, up by 44pc on the year from 508,000t last year.
But exports to the EU27 and the UK totalled 864,000t in May, down by 19pc from the 994,000t exported during the same period last year as exports to Poland and the UK have dwindled.
Shipments to Morocco and Japan also increased in May, with Morocco taking 21pc and Japan 66pc more US coal on the year to 291,000t and 278,000t, respectively. Moroccan utilities have sought to diversify away from Russian supply, owing to difficulties in processing payments.
Exports to Egypt were consistent in May, with the country taking 176,000t, up slightly on the year from 164,000t in May 2022.
And the Domincan Republic's intake of US coal continued in May, taking 56,000t from nothing last year. The country has taken 404,000t of US coal in January-May, up from just 48,400t last year.
Hampton Roads drives export growth
Shipments from Baltimore, Maryland and Norfolk, Virginia grew by 66pc and 99pc, respectively, in May, driven by increased shipments to India.
The entirety of the 1.1mn t shipped from the US to India in May came out of Baltimore.
Export growth from Norfolk came from handling more coal destined for Europe, with 96,000t sent to the Netherlands, 24,300t to Germany and 38,500t to Italy, all up from nothing in the same month a year ago.
The three coal terminals in the Hampton Roads region of Virginia handled an estimated 2.69mn t in May, up from 2.39mn t in May 2022, the Virginia Maritime Association said. This may include some coking coal.
Exports from San Francisco increased by 108pc on the year, driven by shipments to Japan increasing to 181,000t from 87,000t.
Alberta exports to Vietnam
Exports of thermal coal from Canada's Alberta province fell by 6pc on the year in April, despite an uptick in exports to Japan and the province delivering its first shipment to Vietnam, Alberta Energy Regulator (AER) data show.
Overall exports in April totalled 663,000t, of which 521,000t were delivered to Japan, up by 335,000t from last year.
Vietnam took 142,000t in April, likely the first shipment of Albertan coal to Vietnam as AER has not recorded any exports to the country in data available spanning back to 2009.
The shipment to Vietnam is likely to be NAR 5,500 kcal/kg quality coal from Vista's Coalspur mine, shiptracking data suggest.
