China to restrict coking coal imports for years: BHP

: Coking coal
21/07/20

UK-Australian resources firm BHP expects China's restrictions on Australian coal imports to remain in place for years, with it setting an unambitious metallurgical coal production target of 70mn-78mn t on a 100pc basis for 2021-22.

The firm expects metallurgical coal production from Australia's Queensland state to be weighted to the second half of 2021-22, with planned wash plant maintenance during July-December weighing on first-half production. It sold 72.58mn t on a 100pc basis in the 2020-21 fiscal year to 30 June, down from 72.61mn t the previous year, when it also planned to boost production in the second half of the year after it scheduled major wash plant maintenance at its Blackwater, Goonyella, Saraji and Caval Ridge mines in the first half of 2020-21.

The firm did increase sales to 21.102mn t on a 100pc basis for April-June from 17.75mn t during January-March and from 17.06mn t in October-December. It was also up on the 20.07mn t during April-June 2020.

Shipments from the BHP Mitsubishi Alliance (BMA) operated Hay Point coking coal export terminal have eased in July from a firm June, according to initial shipping data compiled by Argus.

The firm continues to struggle with geotechnical constraints and lower yields at its 6mn t/yr South Walker Creek mine, which it owns through its BHP Mitsui Coal (BMC) joint venture. It recorded record output from its Broadmeadow mine, which forms part of BMA's Goonyella complex, in April-June.

BHP expects average costs to be in a $74-78/t range, which it revised up from $69-75/t in April. It realised an average price of $118.54/t for hard coking coal and $104.40/t for weak coking coal during January-June, up from $106.30/t and $73.17/t respectively for July-December. This compares with $133.51/t and $84.43/t respectively in January-June 2020.

BHP defines hard coking coal as those with a coke strength after reaction (CSR) of 35 and above, with weak coking coal categorised as those with a CSR of below 35.

Argus last assessed the premium hard low-volatile coking coal price at $211/t fob Australia yesterday, up from $89.50/t on 31 December. Argus assessed the semi-soft coking coal price at $126.90/t fob Australia, up from $71.20/t over the same comparison.

Around three-quarters of BHP's share of metallurgical coal output comes from BMA, BHP's 50:50 joint venture with Japanese trading house Mitsubishi. The remaining quarter comes from BMC, its joint venture with Japanese trading firm Mitsui. BHP has an 80pc interest in BMC, which it has earmarked for sale along with its thermal coal assets.

By Jo Clarke

BHP Queensland coal sales						(mn t)
	Apr-Jun 2021	Jan-Mar 2021	Apr-Jun 2020	FY 2020-21	FY 2019-20	FY 2021-22 target *

Coking coal	8.34	7.11	8.32	29.44	30.48
Weak coking coal	3.10	2.44	2.80	10.51	10.07
Thermal coal	0.40	0.21	0.18	0.67	0.53
Total	11.83	9.76	11.30	40.62	41.09	39-44
Total (100%)	21.10	17.75	20.07	72.58	72.61	70-78
Source: BHP
* target is for production not sales

Metallurgical coal prices ($/t)

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25/04/28

Japan’s coking coal imports extend downtrend in March

Singapore, 28 April (Argus) — Japan's coking coal imports extended a downtrend in March, reflecting the prolonged downturn in the steel sector, which has weighed on raw material demand. The country imported 2.57mn t of coking coal in March, down by 18pc on the year but up by 5pc from February, according to data from the country's finance ministry. Shipments dropped by 10pc to 8.15mn t in January-March 2025 from a year earlier. Top supplier Australia shipped 19pc less volume from a year earlier at 1.78mn t, and volumes in January-March fell by 18pc from 2024 to 5.59mn t. Arrivals from Canada fell to 192,903t in March, down by over 60pc compared with a year and month earlier, but January-March volumes rose by 11pc on the year to 1.22mn t. Metallurgical coke imports rose by around 30pc on the year and month to 78,729t in March, with volumes in January-March 28pc higher on the year at 255,804t. Crude steel production from basic oxygen furnaces (BOF) rose by 3pc on the year to 5.3mn t. But output could fall in coming months. Japanese steel producer JFE will suspend operations at one of its three BOF in the West Japan Works from around mid-May on the back of lower steel demand in domestic and export markets, the firm announced on 2 April. This is expected to lower annual crude steel output by around 15pc. Meanwhile, the mill will proceed to invest in an electric arc furnace (EAF) facility in western Okayama, which could begin commercial operations in April-June 2028. Other steelmakers such as Nippon Steel and Kobe Steel have also been making the shift from BOF to EAF. The Argus premium low-volatile hard coking coal price fob Australia averaged $174.84/t in March, down by 7pc from February. By Xiuqi Huang Japan's coal imports Origin Mar 25 Mar 24 y-o-y ± % Feb 25 m-o-m ± % Jan-Mar 2025 Jan-Mar 2024 y-o-y ± % Coking coal ('000t) Australia 1,781 2,206 -19 1,522 +17 5,589 6,780 -18 Canada 193 493 -61 554 -65 1,221 1,103 +11 US 297 215 +38 252 +18 743 848 -12 Indonesia 298 230 +29 85 +249 495 329 +50 Colombia 0 0 n/a 25 -100 25 0 n/a Others 0 0 n/a 0 n/a 80 48 +67 Total 2,569 3,144 -18 2,438 +5 8,153 9,109 -10 Met coke (t) China 74,633 57,426 +30 56,445 +32 222,202 188,235 +18 Others 4,096 4,069 +1 3,713 +10 33,602 11,323 +197 Total 78,729 61,495 +28 60,158 +31 255,804 199,558 +28 Source: Japan Finance Ministry Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US Senate seeks coordinated cargo theft probes

25/04/14

US Senate seeks coordinated cargo theft probes

Washington, 14 April (Argus) — US rail and other transportation industries are urging Congress to move forward on a bill that would create a division within the Department of Homeland Security to coordinate investigations of organized cargo theft. The bipartisan Combating Organized Retail Crime Act of 2025 was introduced on 10 April by Senate Judiciary Committee chairman Chuck Grassley (R-Iowa) and senator Catherine Cortez Masto (D-Nevada). The bill, similar to a 2023 effort, calls for creation of an organized retail and supply chain crime coordination center to unite experts from federal, state and local law enforcement agencies, as well as retail industry representatives. The Class I railroads also operate their own police forces with powers equivalent to public law enforcement. Coordinating investigations in a timely manner is difficult because of the proliferation of different agencies. Railroad police officials are limited to carriers' facilities, while local police forces are unable to quickly investigate railroad thefts because they need specific permission to enter railroad property. "Organized criminal operations continue to evolve and escalate their targeted attacks against our nation's supply chain and retailers," Association of American Railroads chief executive Ian Jefferies said. The nation's largest railroads experienced a 40pc spike in cargo theft last year, costing carriers more than $100mn, AAR said. Rail thefts tend to be split between flash mob robberies and organized efforts by criminal networks, according to Danny Ramon, director of intelligence and response at logistics platform Overhaul. Flash mobs often target containers in urban areas, seeking valuable products such as apparel and footwear that they can quickly sell. These thefts often occur in regions near ports where containers are loaded onto trains, including Los Angeles, Chicago and Atlanta. But thefts in rural areas are becoming more prolific, Ramon said. They have become popular locations because it can take law enforcement an hour or longer to reach trains as opposed to minutes for urban rail cargo thefts. Rural areas also make it easier for groups to stage larger thefts. The organized groups tend to track trains from origin and monitor them along the way, breaking in during breaks in rural areas. They come prepared with equipment and cargo vans to enable them to quickly empty products from trains. Arizona has become a popular location for thefts because of its vast portions of rural area. In addition, many trains are heading east with containers of goods recently loaded from west coast ports. Thefts by criminal organizations have increased in part because of the ease in selling to individuals. The proliferation of on line websites have allowed these organizations to bypass traditional third-party middlemen and sell directly to consumers, Ramon said. By Abby Caplan Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Polish JSW aims to lift 2025 coking coal output: update

25/04/09

Polish JSW aims to lift 2025 coking coal output: update

Updates production results in last paragraph. London, 9 April (Argus) — Poland's JSW aims to increase coking coal production this year, despite recent accidents . JSW hopes to reverse declining output to boost revenue and cut losses caused by falling met coal and coke prices. It made a 7.3bn zlotys ($1.9bn) loss last year, although this included a 6.4bn zlotys write-down in the value of its assets. The firm expects to increase coking coal output every quarter to reach a full-year figure of 11mn t, up from 9.9mn t in 2024. It is still targeting 14mn t in 2026. In 2024, 21pc of JSW met coke sales were to domestic buyers, 45pc of sales were for export to Europe, and 35pc of sales were for destinations outside Europe — mostly India, with smaller volumes for Algeria, Pakistan and Bangladesh. Despite underutilisation of its coke plants and a decline in seaborne shipments resulting from competition from emerging Indonesian supply, JSW said exports remain crucial for met coke production. The company estimates Polish coke production capacity is at about 8.8mn t/yr, with utilisation running at about 85pc in 2024, while demand in Poland is just 2.7mn t/yr. "Poland needs to export about 6mn t/yr of coke for its production to survive," JSW said. The firm said it is underutilising coke capacity to match ordered volumes, and that it is not producing to boost stocks because it wants to safeguard liquidity. Data obtained by Argus indicate that Polish ports exported 416,000t of met coke in the first quarter, with exports from Swinoujscie at 186,000t, Gdynia loading 165,000t and Gdansk loading 65,000t. JSW said today its coking coal output dropped to 2.3mn t in the first quarter of 2025, down by 3pc on the year and by 14pc on the quarter. The firm's coke output reached 700,000t in January-March, stable on the quarter, but 15pc lower on the year. By Tomasz Stepien Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Peabody reviews Anglo's Australian coal assets buyout

25/04/09

Peabody reviews Anglo's Australian coal assets buyout

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Trump issues executive orders to boost coal

25/04/08

Trump issues executive orders to boost coal

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