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Pulse of Charcoal - May 4
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, quotations of thermal coal in the EU exceeded
$ 75 / t The increase in the indices was due to an increase in natural gas prices on the European TTF trading platform to 21.8 euros / MWh (+2.6 euros / MWh by April 14.04.2021, 27.04.2021) on the news of a reduction in gas export volumes by Gazprom. On April 2021, 808, Gazprom refused to increase gas supplies to Europe in May 98. In addition, the decrease in wind generation in a number of European countries to 21.04.2021 GWh (-44.4 GWh by April XNUMX, XNUMX) provided additional support to coal indices. However, the high cost of carbon dioxide quotas (EUR XNUMX / t) may constrain further strengthening of coal prices.
The suspension of coal supplies on the railway line connecting the coal provinces of South Africa and the port of Richards Bay, strengthened the indices of the South African material in the range of 94-95 USD / t.
According to representatives of the South African railway operator Transnet, on April 27.04.2021, 3.2, a derailed train blocked traffic. Limited coal exports from South Africa have stabilized material indices despite weakening demand in the Indian market caused by the country's new coronavirus outbreak. Coal reserves at Richards Bay terminals amounted to 0.3 million tons (-21.04.2021 million tons by XNUMX).
Reduction of quotations of thermal coal from Australia below $ 90 / t. due to weak demand from generating companies from the Asia-Pacific region. Some market participants expect to buy Indonesian coal at a discount from Indian traders amid the worsening epidemiological situation in the country.
On April 25.04.2021, XNUMX, representatives of the State Development and Reform Committee of the PRC (NDRC) announced that the committee intends to intensify cooperation with the central customs authorities of the PRC with a view to a possible weakening of import quotas for the import of coal. This measure is intended to prevent a shortage of material supply in the Chinese market in the summer, when there is a seasonal increase in electricity demand.
Continuous rains in the southern provinces of Indonesia restrict the supply of export coal, which, against the backdrop of strong demand from Chinese consumers, supports the quotes of the material of Indonesian origin above $ 85 / t.
The growth in the supply of coking coal from Canada and the United States to the Asia-Pacific markets reduced the demand for Australian material, reducing the quotations of metallurgical coal from Australia below 110 USD / t.
Exporters compete for market share in China's coking coal market
China's coking coal imports are gradually recovering despite the 2020 ban imposed by the Chinese government on the supply of Australian coal to China and the negative consequences of the Covid-19 crisis.
According to the customs service, in March 2021, China imported 4.2 million tons of coking coal (-13% versus March 2020 and + 52% versus February 2021). The increase in monthly shipments in 2021 was associated with an increase in export volumes by suppliers from Mongolia, the United States and Canada. In March 2021, coal supplies from Mongolia increased to 2.2 million tons (a 44-fold increase compared to the same period last year), from the United States - to 0.7 million tons (a 5-fold increase compared to the same period last year) ), from Canada - up to 1.3 million tons (2-fold growth compared to the same period last year). Russian companies exported only 0.6 million tons (+ 59% compared to the same period last year).
After the termination of coal supplies from Australia, Mongolia became the main exporter of coking coal to the Chinese market. In Q1 2021, Mongolian metallurgical coal exports to China increased to 6.1 million tonnes (+ 123% yoy), while Russian supplies totaled 1.4 million tonnes (+ 8% yoy). the same period last year). Russian coal producers Kolmar and Elgaugol, located in Yakutia, plan to increase production and export of coking material to China, taking advantage of the geographic advantage of being close to the PRC compared to other Russian exporters. However, despite the ambitious plans of Russian coal exporters to increase supplies to the east, the export of material is limited by the lack of capacity of the Baikal-Amur and Trans-Siberian mainlines.
Dmitry Bosov's heirs received shares in Alltek Group
On April 27, 2021, by a court decision, the share of Dmitry Bosov, the founder of the Alltek Group, who died in May 2020, constituting 86.57% of the company's shares, was distributed among his 8 heirs, including Katerina Bosov. Each of them received 10.82%.
On March 29, 2021, by a court decision, Katerina Bosov, the widow of Dmitry Bosov, was to transfer 43.3% of the Alltek Group shares to the estate. The court satisfied the claim of Dmitry Bosov's heirs, who challenged the legal grounds for transferring the share to Katerina Bosov (see CAA Russian Coal Weekly, November 27, 2020).
The court also lifted the ban on transactions with the Group's assets, including the transfer of the Sibanthracite coal company to the ownership of A-Property by Albert Avdolyan. Earlier, A-Property signed an agreement with the Alltek Group on the basic conditions for the acquisition of Sibanthracite for $ 1 billion. Under the terms of the deal, Sibanthracite remains independent as a company. The agreement involves the signing of long-term contracts with top managers of Sibanthracite, as well as their participation in the authorized capital of the company. Sibanthracite is the most profitable coal asset in Dmitry Bosov's business.
Sibanthracite is the world leader in the production and export of high quality anthracite with a total production of 17.3 million tonnes in 2020 (-5.7 million tonnes or -25% by 2019). In January 2021, Rostec State Corporation and structures associated with A-Property also gained full control over the port of Vera and the Ogodzhinsky coal deposit - two enterprises previously owned by the heirs of Dmitry Bosov and Katerina Bosov (see CAA Russian Coal Weekly dated January 29, 2021 g.).
The terminals of the Big Port of St. Petersburg may be relocated to Lavna
On April 19, 2021, the former Minister of Transport of Russia and the current CEO of GTLK (State Transport Leasing Company), Evgeny Dietrich, announced that part of the terminals of the Big Port of St. Petersburg could be moved to the port of Lavna, which is being built in the Murmansk region. In March 2021, it was proposed to transfer the port facilities of the Big Port of St. Petersburg to the port of Ust-Luga in order to use the vacated areas for the construction of 4.8 million sq. m of housing, commercial premises and social infrastructure. The cost of the redevelopment project is estimated at 440 billion rubles.
The Big Port of St. Petersburg is one of the largest ports in the North-West of Russia with a cargo turnover of about 60 million tons in 2020. The bulk of cargo transshipment accounts for containers, oil products and mineral fertilizers.
Ust-Luga is the second largest port in Russia. In 2020, the port terminals handled 103 million tons of various cargoes, including oil and oil products, coal, fertilizers and containers.
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.
BusinessGlobus and the Port Technology Development Center each own 30% in the project, another 25% belong to the Siberian Business Union (SDS), 10% to Russian Railways and 5% to STLC. However, at the end of 2020, due to the fall in coal prices, key shippers did not sign binding agreements on the capacity utilization of the coal terminal at Lavna.
According to 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 universal multifunctional transshipment complexes.
The Russian government has already invested 32 billion rubles in Lavna. The construction of the port is planned to be completed in 2023.