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Pulse of Charcoal - May 22
Coal industry - actual figures and facts. Partner project of the Modern Analytical Agency (CAA) and the EastRussia portal
Mining, logistics, prices, export - all that the coal industry in Russia and in the world lives on is concise and to the point - in a new partner project of the Modern Analytical Agency (CAA) and the EastRussia portal
A brief overview of the global coal market
Last week, thermal coal indices in the European market weakened below $ 84 / t. amid falling prices for natural gas and the high cost of carbon credits. The price of natural gas on the European TTF trading platform dropped to 23.0 euros / MWh (-3.0 euros / MWh by 12.05.2021) on the news of the decision of the US Congress not to impose sanctions against participants in the Nord Stream-2 project and the resumption of operation of a number of Norwegian plants for production of liquefied natural gas (LNG) after scheduled maintenance. The cost of carbon dioxide emission quotas continues to be at historic highs of 49.3 € / t. (-4.7 EUR / t. To 12.05.2021). Coal reserves at ARA terminals amounted to 4.4 million tons.
(-0.1 million tons by 12.05.2021).
Low volumes of coal in the warehouses of the port of Richards Bay, as well as plans of the railway operator Transnet to carry out repairs in June-July 2021, keep the quotations of high-calorific coal from South Africa at two-year highs of 104-105 USD / t. Nevertheless, the worsening epidemiological situation in India had a negative impact on the demand of Indian enterprises for medium-calorie South African coal, putting pressure on the indices below $ 72 / t.
On 17.05.2021 May 32, the South African company South32 announced the sale of its controlling stake in SA Energy Coal Holdings (SAEC) to Seriti Resources Holdings. This decision is SouthXNUMX's implementation of its strategy to exit high-carbon assets.
Last week, the strengthening of coal indices continued in the domestic market of China. As of May 19.05.2021, 5500, the price of coal of 142 kcal / kg NAR of domestic production in the port of Qinhuandao increased above XNUMX USD / t.
The increased trading activity of Asian consumers contributed to the growth of the Australian material indices over $ 100 / t.
Last week, at the international conference 'Steel and Mining', representatives of the large mining companies BHP and Anglo American announced a strategy of natural depletion of their metallurgical coal resource base. This approach assumes no investment in new coal projects, as well as the gradual sale of all coal assets. In the opinion of the company's management, it is necessary to increase the volumes of extraction and export of copper, nickel and potash, i.e. commodities whose consumption is associated with low emissions.
Chinese Generators' Demand for Low Calorific Coal from Indonesia Pumps Indonesian Material Quotes Higher
USD 93 / t
The growth in demand for Australian coking coal from metallurgical plants in the Asia-Pacific region continues to positively affect the dynamics of coal prices from Australia above 130 USD / t.
Coal imports of Ukraine grew by 20% in January-April 2021.
In January-April 2021, Ukraine's coal imports increased to 7.0 million tons (+1.2 million tons, or + 20% compared to the same period last year).
4.2 million tons or 60% of imported coal was supplied by Russia, 1.5 million tons or 22% were coal supplies from the USA, 0.8 million tons or 12% of Ukraine's import volumes fell on supplies from Kazakhstan, the remaining 0.5 million tons. or 6% were supplied by other countries.
Despite critically low coal reserves in Ukraine in early 2021, warm weather in April and May led to a recovery in material volumes in power plant warehouses.
On December 16, 2020, Ukraine extended a 65% duty on coal imports from Russia until the end of 2021. Import anthracite and coking coal are not subject to duty, as there is a shortage of these types of material in Ukraine.
Ilya Traber became the owner of a coal terminal in the port of Ust-Luga
On May 7, 2021, 100% of New Utility Technologies (NKT) became the property of Russian businessman Ilya Traber. Previously, he owned only 13% of the company. The main asset of NKT is Yug-2, the second largest coal terminal in the port of Ust-Luga after Rosterminalugol.
In 2020, the Yug-2 company handled 13% of the total volume of coal transshipment in Ust-Luga or 5.09 million tons (+1.9 million tons or + 59% by 2019). Coal transshipment volumes in Ust-Luga during the same period reached 37.79 million tons of coal (+4.07 million tons or + 12% by 2019). The largest coal terminal in Ust-Luga is Rosterminalugol with a cargo turnover of 26.49 million tons (+2.04 million tons or + 8% by 2019).
Ilya Traber is a co-owner of 10 companies, including NKT, Primorsky Universal Loading Complex in St. Petersburg and one of the largest generating companies in the Leningrad Region, LOESK.
The property of the Zarechnaya mine is put up for auction for the fifth time
According to the Unified Federal Register of Bankruptcy Information, the property complex of the Zarechnaya mine has been put up for auction for the fifth time with an initial price of only 1.89 billion rubles. ($ 25.6 million). For comparison, at the first auction in 2018, the property of Zarechnaya was offered at a starting price of 16.74 billion rubles (226.9 million dollars). During the last auction in May 2020, no bids were recorded.
Currently, the property complex offered at the auction has been expanded. Now it consists of the property of the mine with an initial price of 1.5 billion rubles. (20.3 million dollars), including assets pledged to Zarechnaya's main creditor - the company Ugletrans, worth 643 million rubles. ($ 8.7 million). Also, the list of property put up for auction included access roads and a railway station, worth 220 million rubles. ($ 2.9 million).
According to the terms of the auction, the price of the lot remains unchanged for 25 working days, and then begins to decrease every
7 working days for 75.1 million rubles.
($ 1 million). However, the property complex cannot be sold at a price lower than 1.74 billion rubles. ($ 23.5 million). Applications for participation in the auction are accepted until July 07, 2021.
The Zarechnaya mine has been in bankruptcy proceedings since the end of 2017. Production of thermal coal at the mine continues. The Oktyabrsky section, which is part of the Zarechnaya mine, suspended production due to massive personnel reductions in May 2020. Coal production at the Zarechnaya mine decreased to 1.59 million tons in 2020 (-1.58 million tons, or -50% by 2019).
Export of Russian coal to Q1 2021 grew by 12.8%
In January-March 2021, Russian coal exports, including sea and rail deliveries through border crossings, increased to 51.0 million tons (+5.8 million tons, or + 12.8% over the same period in 2020).
Coal transshipment in the seaports of the Far East increased to 23.9 million tons.
(+2.2 million tons or + 10.0%). The increase in coal transshipment volumes was driven by an increase in supplies to coal terminals in Vanino, Nakhodka, Posyet, Vladivostok and the port of Vera due to stable demand in the Asia-Pacific market amid rising indices, caused, among other things, by continuing trade tensions between Australia and China and China's refusal to import Australian coal.
Railway export of coal to Asia through border crossings amounted to 2.3 million tons (-1.2%). Russian Railways is forced to periodically introduce railway conventions for railroad coal transportation due to the congestion of routes in the direction of the Russian-Chinese border crossings against the background of quarantine measures by the Chinese customs, leading to a slowdown in cargo handling and a reduction in the supply of Russian material.
Coal exports through the ports of the Baltic and the Barents Sea amounted to 14.2 million tons (-0.3%). Coal index growth in Europe, driven by increased demand at the end of 2020, continued in early 2021 amid expensive gas in the EU and a sharp cooling, which led to a reduction in stocks at ARA terminals to nearly 5-year lows. In addition, problems with the supply of coal from Colombia allowed Russian exporters to replace the volumes of Colombian material with increased supplies from a number of terminals in the North-West.
Railway exports to Eastern Europe through border crossings increased to 5.5 million tons (+1.6 million tons or + 42.4%), mainly due to increased demand from Ukraine and Poland. In January 2021, due to a sharp cooling, coal consumption at Ukrainian thermal power plants increased, which led to a decrease in local coal reserves below a record low of 0.6 million tons (-33% compared to the critical levels required to maintain a stable energy supply).
Coal exports through the ports of the Azov-Black Sea basin increased to 5.1 million tons (+2.0 million tons or + 67.1%) amid increased supplies to the OTEKO coal terminal in Taman, including through expanded cooperation with a number of Russian coal exporters , including CPC, Evraz, Invest-Uglesbyt, Topprom, Stroyservice and Russkiy Ugol, with the main volumes provided by SDS-Ugol and Sibanthracite Group. Due to the limited capacity of the BAM and the Trans-Siberian Railway to the ports of the Far East, some Russian coal producers have to redirect their supplies aimed at the Asia-Pacific market to Taman.
Detailed data on Russian coal exports are shown in the table below.
Russian coal exports by destination (Jan-Mar 2020/2021), thousand tons