This trend is likely to continue thanks to a continued strong operating performance plus currency depreciation. On the other hand, US suppliers, many of which exhibit high costs, will not see the cost relief that currency devaluation brings to Australia, principal Asia Pacific Coal analyst Rory Simington.

“Australia is a standout competitor in both the metallurgical and thermal coal trade, but particularly the former,” he said.

Comparing 2014 from 2013, while global met coal import demand reduced by about 8 million tonnes, Australian exports rose by around 14Mt, growing seaborne market share from 58% to 64%.

In thermal coal, Australian exports were also strong, leaping 20Mt despite seaborne demand remaining essentially flat last year.

In a 2015 global coal outlook report, Wood Mackenzie says that Australia and Indonesian coal suppliers will see some upside in the difficult months ahead as they continue to capture market share of coal exports from higher cost producers.

Further modest productivity gains, the rapid fall in oil prices and currency devaluation in Australia and Russia will help lower costs.

Therefore, Australian mines stands in a relatively strong position compared with higher cost suppliers – particularly those in the US – which are at much greater risk of closures this year.

Even with increased closures and reduced US supply, Wood Mackenzie says it does not foresee sufficient volume exiting to balance the market and support price recovery. Lower-than-anticipated demand, especially from China combined with persistent production will be key factors that will sustain the weak market environment.