Thermal coal indices in the European market were in an upward trend, having strengthened above 155 USD/t amid uncertainty on the gas market, a decrease in average daily temperatures in a number of European countries and limited supplies of Russian coal due to logistical problems. Russian gas supplies to the EU remain below scheduled levels. European gas storage facilities are only 61% full (-18% y-o-y). Currently, there are still concerns that gas reserves could fall to critically low levels before the end of winter.
The growth of South African coal quotes above 140 USD/t was caused by extremely low stocks at Richards Bay Coal Terminal (RBCT), which amounted to 2.1 mio t last week (+0.2 mio t w-o-w).
In China, spot prices for material 5500 kcal/kg NAR were in the range of 168-170 USD/t FOB Qinhuangdao. On November 29, the Chinese government announced the suspension of operations at a number of mines in the leading coal mining province of Shanxi due to exceeding the permitted level of production.
Australian indices surged above 176 USD/t, driven be adverse weather in Australia. According to the Australian Bureau of Meteorology unfavorable weather with a lot of showers and cyclones may last until April 2022.
Indonesian 5900 GAR continued to decline to 130 USD/t FOB Kalimantan, following low trading activity from China and India.
Australian metallurgical coal quotes continued to sit at 340 USD/t amid adverse weather that caused disruptions in the supply of the material.
Source: CAA Analysis