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Pulse of Charcoal - May 29
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
Over the past week, the European market saw a strengthening of steam coal quotes above $ 90 / t. The indices were supported by the news of the suspension of the work of the Colombian coal mining company Cerrejon due to the blocking of its railways. The price of natural gas on the European trading platform TTF rose to 25.4 € / MWh (+ 2.4 € / MWh by 19.05.2021). The cost of carbon dioxide emission quotas continues to be at historic highs of 52.8 € / t. (-3.6 EUR / t. To 19.05.2021). Coal reserves at ARA terminals amounted to 4.6 million tons (+0.2 million tons to 19.05.2021).
On 05.05.2021/19/XNUMX, the Cerrejon railway line was blocked by former employees of the company after the forced layoffs amid the negative consequences of the Covid-XNUMX crisis. Protesters also restricted fuel supplies to the company's coal mine, which forced Cerrejon to halt production.
Increased demand from Indian generating companies ahead of the start of the monsoon season (June to October) has strengthened the South African material indices above 110 USD / t. Coal reserves in the port of Richards Bay decreased to 2.1 million tons (-0.1 million tons to May 19.05.2021, XNUMX).
Last week, a decrease in coal prices was observed in the Chinese domestic market. As of May 26.05.2021, 5500, coal prices of 133 kcal / kg NAR domestically produced in the port of Qinhuangdao fell below $ XNUMX / t. Due to the high price, Chinese consumers limited their purchases of local coal, which put pressure on the indices.
Ahead of the 100th anniversary of the Chinese Communist Party and the start of the rainy season in China, the government has limited coal mining to avoid potential mine accidents. More than 20 people were affected by underground flooding in a coal mine in northwest China's Xinjiang province last month.
The news of the maintenance of the PWCS Carrington coal terminal at Newcastle from May 27 to July 10 pushed the Aussie indices above $ 120 / t. against the backdrop of growing demand in the Asia-Pacific region.
Strong demand from China and India had a positive impact on the prices of the Indonesian 5900 GAR material above $ 92 / t. In April 2021, Indonesia supplied 9.9 million tons of thermal coal to India (+3.5 million tons by April 2020).
The continuing rise in steel prices and the gradual increase in the cost of metallurgical coke in the markets of the Asia-Pacific region contribute to the growth of demand from metallurgical enterprises in Southeast Asia for coking coal of Australian origin and strengthen the indices above $ 150 / t.
On May 23, 2021, the China Steel and Steel Industry Association urged local steel companies not to create artificial shortages leading to higher steel prices in the domestic market. In April, China's steel price index rose 9% on the back of the beginning of the construction season and rising car sales.
NWF will finance the 3rd stage of BAM and Transsib
On May 21, 2021, at a government meeting chaired by First Deputy Prime Minister Andrei Belousov, seven infrastructure projects worth 4.9 trillion were selected. rub. ($ 66.7 billion) for co-financing from the National Wealth Fund (NWF).
If approved by the Prime Minister of Russia, these projects will receive 895 billion rubles from the NWF. ($ 12.1 billion). One of the key infrastructure initiatives selected during the meeting was the third stage of modernization of the Baikal-Amur (BAM) and Trans-Siberian (Transsib) railways. This project provides for the development of the Yakut cluster to increase the supply of coal from Yakutia to the eastern ports of Russia. In 2020, coal mining companies operating in Yakutia exported 45.7 million tons of coal.
The total costs for the third stage of modernization of BAM and Transsib, taking into account the construction of electrified tracks, may amount to 700 billion rubles. ($ 9.5 billion). Russian Railways seeks to attract 25% of the funds allocated for the Yakut project by the NWF at a low interest rate. According to the statement of the general director of the company Oleg Belozerov, the project is planned to be completed by 2026-2027.
The project to expand the railway capacity of the Russian Far East includes three stages. The first stage provides for an increase in the throughput capacity for all cargo to 144 million tons by 2021. The implementation of the second stage will increase the throughput capacity for all cargo to 180 million tons per year until 2024. The Yakut cluster project is the third stage of modernization of the BAM railways and the Transsib, which includes the construction of second tracks from the Tynda railway station to the Vanino port.
There are two large coal producers in Yakutia: Kolmar and Elgaugol. Both companies intend to increase production volumes as well as existing port facilities. The throughput capacity of the new coal terminal VaninoTransUgol (VTU), built by Kolmar's subsidiary Anna Tsivileva, is 12 million tons per year. Transshipment volumes will increase by 24 million tons by 2022.
Albert Avdolyan's A-Property also plans by 2024 to build a coal terminal in the port of Vanino with a capacity of 30 million tons of coal per year and an enrichment plant on Elga with a capacity of 32 million tons at the first stage (end of 2021) and 45 million tons at the second stage (2023).
Southern Coal Company plans to launch a new mine in 2023.
In 2023, South Coal Company plans to commission the Sadkinskaya-Vostochnaya mine (Rostov Region, Russia). Production at the mine may reach 1 million tons of coal per year at the first stage with a potential increase to 3 million tons by 2026. The balance reserves of the coal section are 78 million tons of anthracite.
Also, the South Coal Company is working on the construction of the Sadkinskaya-Severnaya mine with balance reserves of 223 million tons of anthracite.
The Southern Coal Company was registered in 2004. The company includes the Sadkinskaya coal mine, the Sadkinskaya and Gukovskaya concentrators and the transport company Yuzhtrans. Valery Ilyenko owns 100% of the Southern Coal Company.
In 2020, the South Coal Company produced 2.3 million tons (-0.2 million tons, or -15% by 2019).
Coal production in Kuzbass in January-April increased by 8%
In January-April 2021, coal mining enterprises of Kuzbass produced 78 million tons of coal (+5.9 million tons or + 8% compared to January-April 2020), according to the Ministry of Coal Industry of Kuzbass. The production of coking material during this period decreased to 23.0 Mt (-2.8 Mt, or -11% compared to January-April 2020), while steam coal production reached 54.9 Mt (+8.6 Mt). or + 18% versus January-April 2020).
Open pit coal companies produced 47.8 million tonnes (+3.8 million tonnes, or + 8.6% versus January-April 2020), underground production increased to 30 million tonnes (+1.9 million tonnes, or + 6.7% versus January- April 2020).
Photo: press service of JSC "Northern Kuzbass"
In April, 18.8 million tons of coal were shipped by rail, including 9.7 million tons in the western direction, 4.7 million tons in the eastern direction and 4.3 million tons via local transport links.
In April, 16.7 million tons of coal were supplied to consumers, including 11.8 million tons for export, 2.9 million tons to Russian metallurgical companies, and 1.5 million tons to local coal power plants.
As of March 1, 2021, coal reserves in Kuzbass reached 15 million tons (-1.2 million tons or -7% by January 1, 2021).
In January-April 2021, 72 million tons were shipped from the railway stations of Kuzbass (+3.3 million tons or + 4.8% compared to January-April 2020).
March 03, 2021 Vladimir Putin called for an increase in the export of Kuzbass coal to the east to 68 million tons per year by 2024. In 2021, the coal enterprises of Kuzbass intend to increase coal production to 235 million tons (+15 million tons or +6 % by 2020).
Lavna will set low rates for coal transshipment
STLK (State Transport Leasing Company) plans to set a tariff for transshipment of coal in the port of Lavna at $ 7.2 / t. This is significantly lower than the cost of transshipment of coal in the ports of the North-West ($ 9 / t), in Taman ($ 13.8 / t) and in the ports of the Russian Far East ($ 15 / t).
Photo: press service of the government of the Murmansk region
According to a representative of STLC, lower tariffs for coal transshipment may attract additional volumes from Russian exporters, since only two companies have confirmed their readiness to load the terminal - the Port Technology Development Center, which owns 30% of the project, and Mikhail Fedyaev, co-owner of the Siberian Business Union (25%) ... The Port Technology Development Center plans to transship up to 2024 million tons in the port of Lavna by 13, and 5.6 million tons of VTS.
According to experts, the low transshipment rate is unprofitable and unprofitable for the port and is unlikely to be able to attract third-party suppliers against the backdrop of falling demand in Europe and the availability of free port facilities in the Baltic and Taman.
As part of the Lavna project, the state is expected to build the Vykhodnoy-Lavna railway, with a state contract for its construction worth 45 billion rubles. ($ 612 million) was terminated at the end of 2020.
The construction of the port of Lavna on the western coast of the Kola Bay was planned to be completed in 2012. However, the project was postponed several times. In addition to the Port Technology Development Center and VTS, 30% of the project belongs to BusinessGlobus, 10% to Russian Railways and 5% to STLC. In 2020, due to the fall in coal prices, key exporters did not sign binding agreements on the capacity utilization of the Lavna coal terminal.
According to the former Minister of Transport of Russia and the current General Director of STLC, Yevgeny Dietrich, STLC and its partners consider the Lavna port project not only as a coal terminal, but also as a port that includes container terminals and multifunctional transshipment complexes.
The Russian government has already invested 32 billion rubles in Lavna.
(426.5 million dollars). The construction of the port can be completed in 2023. From 2023, the volume of coal transshipment in Lavna, according to the project, should reach the level of 18 million tons / year.