World coal market: brief overview

Over the past week, thermal coal quotes on the European market reached a new all-time high, which exceeded 265 USD/t, adding 50 USD/t within one trading session, after the start of Russia’s military operation in Ukraine amid the boost in gas indices on the European trading platform TTF to 87.5 EUR/MWh (+11.8 EUR/MWh w-o-w), lower average daily temperatures in some European countries and an increase in electricity prices in Germany.

Quotes of South African material soared to 250 USD/t, driven by high demand from India and the political conflict between Russia and Ukraine. Coal stocks at RBCT terminal amounted to 3 mio t (+0.6 mio t w-o-w) due to issues with coal deliveries via Transnet railway net and current congestion at RBCT, where average vessel waiting time totaled 6 days (+3 days w-o-w).

In China, spot prices for 5500 NAR dropped by 2 USD/t to 161 USD/T FOB Qinhuangdao, caused by the tightening of price control measures by China’s National Development and Reform Commission (NDRC).

Australian coal quotes spiked above 255 USD/t, following the European indices as the situation between Russia and Ukraine escalated and the coal supply shortage in the international market intensified.

Indonesian 5900 GAR fell to 139 USD/t FOB Kalimantan on issues with exports supplies due to adverse weather and the need for mining companies to comply with domestic supply obligations (DMO). Indonesian Ministry of Energy and Mineral Resources is now checking DMO compliance on a monthly basis to avoid a repeat of coal shortages on the domestic market in the future.

Australian metallurgical coal indices climbed above 455 USD/t on the back of the supply shortage owing to adverse weather in Australia and increased demand from Asian steelmakers.

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