Latest market news

Tight supply limits US, Canada coking coal exports

  • : Coking coal
  • 21/09/09

Supply constraints weighed on US and Canadian coking coal exports in July, trade data show, as producers were unable to take full advantage of strong Chinese demand for non-Australian coal and high seaborne prices.

US coking coal exports in July fell by 9.3pc compared with 2020 and by 20.3pc from a month earlier to 3.08mn t, while Canada's exports rose by 13.5pc from a year earlier but fell by 22.3pc from June to 1.9mn t in July.

US January-July exports totalled 23.07mn t, 4.5pc higher than a year earlier but 18.9pc lower than in 2019, a sign of tighter supply in the country.

Strong demand in China, and to a lesser extent in the Atlantic basin, would have encouraged US producers to raise output where possible, but limited access to funding and a labour shortage along the coking coal supply chain, as well as the continuing strike at producer Warrior Met Coal, meant that output at some major operations fell in the second quarter.

In Canada, a wildfire in British Columbia on 30 June damaged rail lines that serve major producer Teck's coking coal mines, and the company forecast a 500,000-800,000t drop in third quarter sales as a result.

Canada's shipments to China were stable on a monthly basis at 893,243t, registering an annual increase of 246pc. But shipments to traditional Asian markets India, Japan, and South Korea fell by 46.2pc, 44.2pc, and 81pc to 173,497t, 281,900t, and 59,400t, respectively, as buyers looked to Australian coal rather than competing with undersupplied Chinese mills, and in line with Teck's intention to focus on spot trade with China after the fire damage to its rail lines.

US exports to China fell by 21.5pc on a monthly basis to 1.13mn t, having shipped no coking coal to China in July 2020. But US exports to China in January-July rose more than tenfold to 5.5mn t. In contrast, shipments to major markets including Brazil, Ukraine, Japan, India and South Korea fell significantly compared with a year earlier.

US shipments to the EU fell by 33.9pc compared with a year earlier to 516,583t in July, while Australian shipments to the EU almost doubled over the same period to 1.5mn t.

US shipments to Brazil fell by 25.2pc from a year earlier to 343,337t in July, while no shipments were made from Canada to Brazil, and Australian shipments to Brazil also fell, by 24.5pc to 302,742t, with Brazilian buying likely to have been limited by rising global coking coal prices. The Argus daily fob Hampton Roads assessment for low volatile coking coal rose to $234.50/t at the end of July, the highest since April 2017, while the high-volatile A coking coal assessment reached a 27-month high of $201/t.

US coking coal exports - principal destinations'000t
DestinationJan-Jul 21±% Jan-Jul 20Jul 21±% Jul 20±% Jun 21
World23,0684.53,075-9.3-20.3
China5,5481,051.01,127na-21.5
Brazil3,186-5.7343-25.2-13.0
Canada1,3111.5284-29.316.5
Netherlands1,9318.2225-42.04.5
Ukraine1,350-37.3195-10.468.4
Japan1,686-11.2166-49.1-62.4
India1,770-28.4158-49.4-35.6
South Korea464-72.0100-49.9na
Turkey500-71.978-82.7na
Croatia643-8.475-15.3-57.5
UK5575.574-51.036.6
Spain31153.56349.0199.9
Finland36544.459na-1.8
Italy498-30.650-66.9-56.4
Poland462-1.244na21.8
Mexico12592.93129,266.423,525.6
Canada coking coal exports - principal destinationst
DestinationJan-Jul 21±% Jan-Jul 20Jul 21±% Jul 20±% Jun 21
World15,969,7200.01,901,46013.5-22.3
China5,734,137na893,243245.93.4
Japan3,219,2994.2281,900-44.2-58.5
India1,285,91675.3173,497-46.2144.9
Germany534,148-14.3130,560n/an/a
Turkey354,591-39.897,39825.8n/a
US404,837143.989,114676.919.5
Taiwan863,250-21.079,6860.8-23.4
South Korea2,635,823173.759,400-81.0-85.6
Poland461,115-12.551,632-21.8-69.2
Chile88,503-18.445,030na3.6
Singapore0249.30nana
Sweden51,814-1.70nana
Netherlands44,000-100.00-100.0na
Italy142,626-0.10na-100.0
France0-87.30nana

US, Canada, Australia coking coal exports '000t

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

24/10/24

Anglo American 3Q iron ore output up, met coal down

Anglo American 3Q iron ore output up, met coal down

London, 24 October (Argus) — UK-South African mining firm Anglo American boosted iron ore production on the quarter and year in July-September, driven by record output from Brazil's Minas-Rio facility. But coking coal output was down after a fire at Australia's 5mn t/yr Grosvenor mine in late June. Anglo American's 2024 iron ore production guidance is unchanged at 58mn-62mn t. Overall Anglo American iron ore output increased by 2pc on the year, as an 11pc rise at Minas-Rio offset a 3pc decline at South Africa's Kumba site. The drop at Kumba was attributed to a change in a third party's logistical capacity. Realised prices were 3pc below the market benchmark at Minas-Rio, which the firm attributes to a large volume of sales being priced on a provisional basis. Iron ore from Kumba averaged a 64pc Fe content and priced 4pc above a 62pc Fe fines benchmark. Anglo American's 2024 coking coal production guidance remains 14mn-15.5m t, after July's downward adjustment . Third-quarter output was down by 6pc on the year, at 4.1mn t, after the fire at Grosvenor in June . Third-quarter production at other sites rose by 3pc on the year. January-September output was 8pc up on the year, at 11.2mn t. Coking coal sales fell by 7pc to 4mn t following the drop in production. Pricing was comparable to index levels at $253/t, the company said, an improvement from the 93pc year-to-date price realisation. Damage at Grosvenor was less severe than expected, Anglo American said, and the firm aims to sign an agreement covering the sale of its coking coal assets in the next few months. Australian coal producer New Hope , Chinese-owned Australian producer Yancoal and Australia's M Resources are among those interested in Anglo American's five Queensland coking coal mines. By Austin Barnes Anglo American Q3 2024 results Q3 2024 Q2 2024 ±% Q2 2024 Q3 2023 ±% Q3 2023 Iron ore output Total 15.7 15.6 1.0 15.4 1.0 Kumba 9.5 9.2 3.0 9.2 -2.0 Minas-Rio 6.3 6.4 -2.0 5.6 5.0 Iron ore sales Total 15.2 16.5 -8.0 14.7 -1.0 Kumba 8.8 9.7 -9.0 8.9 -2.0 Minas-Rio 6.4 6.4 -7.0 5.9 3.0 Anglo American Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

CSX forecasts softer 4Q rail demand


24/10/17
24/10/17

CSX forecasts softer 4Q rail demand

Washington, 17 October (Argus) — Eastern US railroad said it expects that fourth quarter commodity market conditions will be mixed, limiting some freight demand. "Going into the fourth quarter, near-term conditions look modestly more challenging," chief executive Joe Hinrichs said on Wednesday. But the railroad expects "modest volume growth", supported by a few segments including chemicals and agriculture. But lower locomotive fuel prices and the impact of international coking coal prices, which are linked to export rail contracts, could drive a decrease in total revenue during the fourth quarter. He estimated that impact at roughly $200mn compared with last year's fourth quarter revenue of $3.68bn. CSX expects to see a carryover of year-over-year momentum in chemicals, agriculture and food, forest products and minerals, while metals and automotive will continue to be challenged. Demand for metals shipments is predicted to soften through the end of the year. Interest in shipments, particularly steel, is soft because of "sluggish demand, ample supply and low commodity prices", chief commercial officer Kevin Boone said. A weaker-than-anticipated automotive market contributed to the drop in metals demand. Consumer demand for automotive products has been reduced by high retail prices and interest rates, which has led to increased dealer inventories and slower production, Boone said. But CSX expects that an "interest rate easing cycle will help these markets normalize," Boone said. Metals and equipment volume fell in the second quarter, primarily because of lower steel and scrap shipments. Shipments of metals and equipment fell by 9pc to about 64,000 carloads compared with the same three months in 2023. Revenue dropped to $208mn, down by 8pc from a year earlier. Automotive volume dropped in the second quarter because of lower North American vehicle production, CSX said. Automotive traffic fell to 301,000 railcars loaded, down by 2pc from the third quarter 2023. Automotive revenue dropped to $98mn, down by 3pc compared with a year earlier. The outlook for fertilizer shipments is mixed following the third quarter as a decline in long-haul phosphates shipments persisted. Volume was negative, but the railroad was able to haul some profitable spot shipments. Shipments of fertilizer fell to 45,000 carloads in the third quarter, down by 4pc from a year earlier. Fertilizer revenue dropped to $118mn, down by 5pc from a year earlier. CSX expects growth in some market segments. Chemicals freight demand is expected to continue growing following "consistent, broad strength across plastics, industrial chemicals, LPGs, and waste. That demand helped boost chemicals volume by 9pc compared with a year earlier. Chemicals revenue rose to $727mn in the second quarter, up by 13pc compared with a year earlier. Agricultural and food products shipping demand is expected to continue growing, led by demand for grain and feed ingredients from the Midwest for supplies. That follows a third quarter when higher ethanol shipments, as well as increased overall volume helped raise volume by 9pc from the third quarter of 2023. Revenue from shipping agricultural and food products rose to $416mn, up by 11pc from a year earlier. CSX expects intermodal growth to continue with the trucking market falling, which would help drive more container freight to rail. Intermodal shipments are goods shipped in containers and trailers between different modes of transportation. The 1-3 October strike by the International Longshoremen's Association (ILA) did impact intermodal traffic, but the railroad was pleased with the "relatively quick short-term solution", Boone said. International intermodal volume during the third quarter rose because of higher east-coast port traffic. Domestic volume was mostly flat. Overall intermodal volume during the quarter increased by 3pc compared with a year earlier. But lower revenue per container helped reduce total intermodal revenue by 2pc to $509mn. CSX does not expect a major shift in coal volume through the end of the year as coal markets seem relatively stable and utility stockpiles are sufficient, Boone said. Rising natural gas prices are also unlikely to stimulate a "near-term step-up in volumes". Export coal demand has been consistent lately, particularly from buyers in Asia. But revenue per railcar for export coal could make a modest single digit drop, as contracts are tied to international coal benchmarks and prices fell earlier this year. Expport coal voume rose to 11.1mn short tons (10.1mn metric tonnes) in the second quarter on higher demand for thermal and coking coal. But domestic coal deliveries fell to 10.2mn st, down by 12pc from a year earlier, on lower deliveries to power plants and lake and river terminals. Rail coal volume fell by 2pc from a year earlier, while revenue dropped by 7pc to 553mn st. Total CSX profits rose to $894mn, up by 8pc compared with third quarter 2023. Revenue increased to $3.6bn, up by 1pc. By Abby Caplan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Some eastern US rail shipments restart after Helene


24/09/30
24/09/30

Some eastern US rail shipments restart after Helene

Washington, 30 September (Argus) — Some railroad operations in the southeastern US have resumed in the aftermath of Hurricane Helene, but major carriers warn that some freight may be delayed while storm-damaged tracks are repaired. Rail lines in multiple states were damaged after Hurricane Helene made landfall on the northeastern Florida coast on 26 September as a category 4 storm and traveled northwards as a downgraded but still dangerous storm into Georgia, Tennessee, and the Carolinas. The storm left significant rain and wind damage in its wake, including washed-away roads, flooded lines, downed trees and power outages. Eastern railroads CSX and Norfolk Southern (NS) said they are working around the clock to restore service to their networks. Norfolk Southern said it had made "significant progress" towards its recovery with most major routes back in service including its Chattanooga, Tennessee, to Jacksonville, Florida, line as well as its Birmingham, Alabama, to Charlotte, North Carolina route. Norfolk Southern said freight moving through areas that are out of service could "see delays of 72 hours". Several of Norfolk Southern's other routes remain out of service, including rail lines east and west of Asheville, North Carolina, because of historic levels of flooding. There are multiple trees to remove along a 70-mile stretch from Macon, Georgia, to Brunswick, Georgia. And downed power lines are keeping the railroad's lines from Augusta, Georgia, to Columbia, South Carolina, and Millen, Georgia, out of service. CSX said "potential delays remain" but did not provide specifics. However, the railroad said it had made "substantial progress" in clearing and repairing its network. The railroad's operations in Florida have mostly reopened, as have rail lines in its Charleston subdivision, which crosses South Carolina and Georgia. But bridge damage and major flooding has kept CSX's Blue Ridge subdivision out of service. A portion of the line running from Erwin, Tennessee, to Spartanburg, South Carolina, has been cleared, but CSX said "a long-term outage" is expected for other parts of the rail line. By Abby Caplan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US Gulf coal loadings resume after Francine: Update


24/09/18
24/09/18

US Gulf coal loadings resume after Francine: Update

Updates status of United Bulk Terminals in paragraph 4 Washington, 18 September (Argus) — Some coal terminals on the US Gulf Coast have resumed operations this week after power was restored following Hurricane Francine. SunCoke Energy said today that the Convent Marine Terminal in Louisiana returned to full operations on 15 September. The company said last week that the terminal was not damaged but did lose electricity after the hurricane made landfall in the state on 11 September. Other terminals in the area that handle coal also experienced some power outages from Francine. Kinder Morgan's International Marine Terminals is "currently ramping back up after working through some power and post-storm issues," the company said today. Kinder Morgan also said all of its other terminals are fully operational. However, a market source on 17 September said that T Parker Host's United Bulk Terminals (UBT) in Davant, Louisiana, is still under force majeure because a barge reportedly sank and blocked the facility's barge terminal after Francine had passed through Louisiana. Prior to the barge incident, the company had expected the terminal to return to full staff on 13 September. T Parker Host did not respond for requests for comment. Impala Terminals also has not responded to requests on the status of the Burnside terminal in Louisiana. Vessel tracking information from analytics firm Kpler show operations from all four terminals have at least partially resumed. A total of five oceangoing vessels arrived at Burnside, UBT and Convent between 13 September and today and all but one of them had already been loaded with coal and departed by today. By Anna Harmon Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

UK High Court rules Cumbria coal mine permit unlawful


24/09/13
24/09/13

UK High Court rules Cumbria coal mine permit unlawful

London, 13 September (Argus) — The UK's High Court has quashed planning permission granted in 2022 for a coal mine in Cumbria, northwest England, ruling the approval was unlawful. The court judgment found the greenhouse gas (GHG) emissions that would result if the coal was burned — known as scope 3 emissions — were not properly considered during the planning process. The proposed mine's developer, West Cumbria Mining, said it would produce a "net zero coal product", using methane capture and abatement, renewable power, "tree planting… and offset of minor residual emissions". But the judgment found the secretary of state at the time, Michael Gove, acted unlawfully in accepting that claim. The UK's Climate Change Act does not allow reliance on international offsets to meet the country's legally-binding carbon budgets. The then-Conservative UK government granted permission for the mine — set to produce metallurgical coal, used in steel production — in December 2022 to West Cumbria Mining. Environmental groups Friends of the Earth and South Lakes Action on Climate Change sought a judicial review, a challenge to the way in which a decision has been made by a public body, focusing on the procedures followed rather than the conclusion reached. The UK's Labour government, elected in July, said it would not defend the planning decision in court. The government will now have to reconsider the planning application, taking into account the "full climate impact", Friends of the Earth said. "West Cumbria Mining will consider the implications of the High Court judgement and has no comment to make at this time", the company told Argus . Today's ruling referenced a landmark June judgment from the UK's Supreme Court, which found that Surrey County Council's decision to permit an oil development was "unlawful because the end use atmospheric emissions from burning the extracted oil were not assessed as part of the environmental impact assessment". The outcome has prompted the UK government to develop new environmental guidance for oil and gas firms . By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Generic Hero Banner

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