Coking Coal prices have shot upwards—as fallout of export disruptions aftermath of the Debbie cyclone which swept across the Queensland region of Australia, hitting more than 80% of the Coking Coal mines in the area. The Queensland region accounts for more than 50% of Coking Coal supply globally.
Exports from Australia will remain disrupted for the next four to five weeks due to damages caused by the cyclone to rail lines. The latest status of the major coal handling systems pertaining to various coal exporting ports are as follows:
The Blackwater System—that connects to the Port of Gladstone—is expected to resume operations after the end of this week. The Newlands System—that connects to the Abbot Point Coal Terminal– is expected to re-open in the next 2-3 weeks. The Goonyella System—that connects to the Darlymple Bay Coal Terminal and Hay Point Coal Terminal—is expected to resume operations after approximately five weeks. The Moura System—that connects to the Gladstone port—is expected to re-open in two weeks. The West Moreton Coal System – an infrastructure owned as well as operated by Queensland Rail—is now re-opened after being closed on Wednesday (29Mar’17) .
Despite the ravages caused by the cyclone, no producer has declared any force majeure on supplies, but deliveries will be delayed as the suppliers have shifted their laycan to a later date due disruptions at ports.
However, the New South Wales state was not hit by the cyclone, so Coking Coal suppliers in the state will enjoy some short term gains. BHP Billiton Limited has resumed operations of its coal mines in Queensland’s Bowen Basin area. The company is the world’s largest exporter of Coking Coal. Peabody Energy Corporation is unable to export its produce as transportation infrastructure from its mines to port was damaged by the cyclone.
On the pricing side, price of the Premium HCC escalated to USD 175.50/MT FoB Australia, as on Monday last.
Source: CoalMint Research
Leave a Reply