Indian ships return for Queensland coking coal

Spanish Market: Coal, Coking coal
16/09/20

Indian shippers are returning to Queensland coal ports in greater numbers, according to shipping lists for the second half of September, after six months of below average coal shipments from Australia.

The adjacent ports of Hay Point and Dalrymple Bay Coal Terminal (DBCT) each have many more ships destined for India arriving over the next fortnight than they have since April, according to shipping lists. This could bolster shipments from the key coking coal ports, after a lacklustre few months with below average ship queues.

There are just 15 ships waiting outside DBCT and Hay Point today, down from an average of 22 and a high of 55 in March. DBCT is tracking 17pc and Hay Point 5pc behind its 2019 figures for January-August, according to port data. The first half of September looks in line with the low shipments reported in July and August, according to early shipping data. This is making an increase in demand for Queensland hard coking coal from India most welcome by the state's mining firms, particularly if it is accompanied by continued rising prices.

Argus last assessed the premium hard mid-vol coking coal price at $119.15/t fob Australia yesterday, up from a recent low of $105/t on 11 August but down from $163/t in mid-March. It assessed the hard mid-vol coking coal price at $96.15/t fob Australia on 15 September, up from $85.30/t on 28 August but down from $144/t on 16 March.

India took just 13.85mn t of Australian hard coking coal in January-July 2020, which is 30pc less than in the same period last year, according to Australian bureau of statistics data. India took less than 20pc of Australia's hard coking coal exports for May-July, which it had not done since 2006.

Several Indian steelmaking blast furnaces were closed as part of the Covid-19 lockdowns, but many are returning to production to avoid operating issues associated with prolonged closures, according to Swiss bank UBS.

An uptick in Indian demand, such as that implied in the latest shipping lists, would be particularly beneficial for shippers through the 85mn t/yr multi-user DBCT port.

DBCT has a target to ship at an annualised rate of 75.56mn t/yr in September, but had only shipped at a rate of 55.3mn t/yr in the first half of the month. It missed its August target of 80.57mn t/yr by around 35pc, shipping at 52.5mn t/yr, according to data released by logistics providers.

DBCT provides port services for many smaller mining firms in Queensland, many of which are struggling to place product in the oversupplied seaborne market. Some of DBCT's mining customers have also scaled back production because of safety issues.

By Jo Clarke

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21/11/24

Cost of government support for fossil fuels still high

London, 21 November (Argus) — The cost of government measures to support the consumption and production of fossil fuels dropped by almost third last year as energy prices declined from record highs in 2022, according to a new report published today by the OECD. But the level of fiscal support remained higher than the historical average despite government pledges to reduce carbon emissions. In an analysis of 82 economies, data from the OECD and the IEA found that government support for fossil fuels fell to an estimated $1.1 trillion in 2023 from $1.6 trillion a year earlier. Although energy prices were lower last year than in 2022, countries maintained various fiscal measures to both stimulate fossil fuel production and reduce the burden of high energy costs for consumers, the OECD said. The measures are in the form of direct payments by governments to individual recipients, tax concessions and price support. The latter includes "direct price regulation, pricing formulas, border controls or taxes, and domestic purchase or supply mandates", the OECD said. These government interventions come at a large financial cost and increase carbon emissions, undermining the net-zero transition, the report said. Of the estimated $1.1 trillion of support, direct transfers and tax concessions accounted for $514.1bn, up from $503.7bn in 2022. Transfers amounted to $269.8bn, making them more costly than tax concessions of $244.3bn. Some 90pc of the transfers were to support consumption by households and companies, the rest was to support producers. The residential sector benefited from a 22pc increase from a year earlier, and support to manufacturers and industry increased by 14pc. But the majority of fuel consumption measures are untargeted, and support largely does not land where it is needed, the OECD said. The "under-pricing" of fossil fuels amounted to $616.4bn last year, around half of the 2022 level, the report said. "Benchmark prices (based on energy supply costs) eased, particularly for natural gas, thereby decreasing the difference between the subsidised end-user prices and the benchmark prices," it said. In terms of individual fossil fuels, the fiscal cost of support for coal fell the most, to $27.7bn in 2023 from $43.5bn a year earlier. The cost of support for natural gas has grown steadily in recent years, amounting to $343bn last year compared with $144bn in 2018. The upward trend is explained by its characterisation as a transition fuel and the disruption of Russian pipeline supplies to Europe, the report said. By Alejandro Moreano and Tim van Gardingen Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: Australia backs no new coal power call: Correction

20/11/24

Cop: Australia backs no new coal power call: Correction

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Indonesia advances coal-fired power phase-out to 2040

20/11/24

Indonesia advances coal-fired power phase-out to 2040

London, 20 November (Argus) — Indonesia plans to retire all coal-fired power plants within the next 15 years, advancing an earlier target of 2056, President Prabowo Subianto said today. This follows from Subianto's address at the G20 Summit in Rio de Janeiro, Brazil, on 19 November, where he emphasised the importance of global collaboration to achieve green energy transition. He also claimed Indonesia is optimistic it can reach net zero emissions before 2050, a decade ahead of its previous commitment. "We plan to build more than 75GW of renewable energy in the next 15 years [to replace coal-fired power]," Subianto added. His claims come at a time when Indonesia's deputy minister of energy and mineral resources (ESDM) Yuliot Tanjung admitted in a speech today that the country's reliance on coal for electricity is still high. Tanjung said the country has huge potential for solar and hydropower generation, owing to its geographical location, but they require technological developments and large investment. Indonesia has the world's fifth-largest operating coal-fired power capacity of 52.31GW, with about 9.81GW more under construction, according to Global Energy Monitor data. Only about 15pc of Indonesia's total installed generation capacity of more than 90GW is currently powered by renewables. New coal-fired projects have continued to be proposed this year, despite the Indonesian government's previous commitment in 2021 to stop building new coal-fired plants after 2023. In addition to power generation, coal is also heavily utilised in Indonesian industry, which contributed to domestic coal production reaching a record 720mn t so far this year. Indonesia could also be on track for a new output record this year, with ESDM expecting 2024 output to surpass 800mn t, up from 775mn t in 2023, if the current output trend continues for the rest of this year. Indonesia and the Philippines are the two most coal-reliant countries in southeast Asia, according to energy think-tank Ember. By Ashima Sharma Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

China to quit coal baseload power by 2050: Think tank

20/11/24

China to quit coal baseload power by 2050: Think tank

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Coal shipments fall at Australia's PWCS terminals

20/11/24

Coal shipments fall at Australia's PWCS terminals

Sydney, 20 November (Argus) — Shipments from the Port Waratah Coal Services (PWCS) terminals at Australia's key port of Newcastle fell 4.1pc on the year in October, from 9.1mn t to 8.7mn t, according to PWCS data, as high-grade coal prices jumped 12.9pc over the same period. Year-to-date shipments from the terminal remain above 2023 levels owing to high shipping volumes in the first quarter of the year. Vessel turnaround times at the terminal in October were down 14.8pc on the year, from 4.7 days to 4.1 days. Argus ' NAR 6,000 kcal/kg coal fob Newcastle price reached a low of $118/t in February 2024, before rising to $140/t in November. October was the third-busiest month at the port this year. PWCS' coal stockpile fell 30pc, from 2mn t to 1.7mn t, from September to October. By Avinash Govind PWCS coal loading data Oct '24 Sep '24 Oct '23 Jan - Oct '24 Jan - Oct '23 PWCS loadings (mn t) 8.7 7.8 9.1 82.0 76.8 PWCS stockpiles (mn t) 1.4 2.0 1.6 1.6 1.5 PWCS turnaround time (days) 4.1 3.1 4.8 4.7 2.5 Newcastle ship queue (vessels) 17.0 NO DATA 9.0 22.7 10.9 Source: PWCS, Newcastle Port * PWCS loadings is total YTD, all others are average per month YTD Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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