Australia outguns coking coal rivals

WHILE China’s total coking coal imports are continuing to decline, Australia’s exports of this commodity to China have grown this year as other nations struggle to compete.

Blair Price

Macquarie Private Wealth said Chinese coking coal imports were down 14% year-on-year in July while they were down more than 12%, or 5 million tonnes, on a year-to-date basis.

“Interestingly, imports from the two largest suppliers, Australia and Mongolia, are up 8% and 24% year-to-date respectively,” MPW said.

“The big falls have come from Canada, the US and Russia, illustrating the difficulty these producers face selling into Asia given weak pricing and a substantial freight disadvantage shipping into Asia.”

MPW has forecast hard coking coal prices to steadily recover from existing prices of around $US120 a tonne to $180/t in 2018.