Coal news and updates

China usurped India as South Africa's largest coal export market last month, although railing difficulties cut overall shipments from Richards Bay.

 

Richards Bay Coal Terminal (RBCT) exported 4.6mn t last month, the lowest February figure since 2014. Shipments recovered from the 2.7mn t record low in January but were still down by 13pc year on year.

 

Rail operator Transnet Freight Rail (TFR) is working to improve rail supply to the export terminal following weeks of disruption, but railings to RBCT still averaged just 1.3mn t / week in February, down by around 200,000 t / week from last February.

 

In addition to an annual rail network shutdown in January and challenges caused by heavy rains and Covid-19, locomotive availability is a key factor behind the disruption. TFR is involved in a legacy dispute with some of its Chinese engine suppliers, which has impacted its locomotive supply. The firm has also had problems sourcing drivers, as overseas workers cannot get to South Africa, a source said.

 

A steep fall in exports to India - usually South Africa's largest market - drove the overall downtrend in February. Indian shipments collapsed by 2.7mn t on the year to 1.16mn t. Some of the tonnage that was previously scheduled for India will have been rolled into March and April, but fresh Indian demand has been relatively subdued, squashed by firm freight rates, particularly for Panamax carriers.

 

Source : https://www.argusmedia.com/ru/news