Coal news and updates

UK thermal coal import volumes continue to fall, June at fresh low

Imports of thermal coal into the UK continued to slump to fresh lows in the first half of 2015, with only 10.81 million mt arriving during the six-month period, down 41% on the year, according to customs data Monday.

Sources have said that a number of factors have impinged on the UK's thermal coal demand, including a hike in the Carbon Price Support mechanism from April which reduced coal's competitiveness with gas as well as the closure of older coal-fired plants.

June thermal coal imports were 613,579 mt, down 72% from a year earlier and 15% lower than May.

While the portion of higher calorific value bituminous coal shipped in June edged up by 13% on May to 489,991 mt, sub-bituminous imports fell by 58% on the month to 123,588 mt, a new low.

Shipments from the UK's main source of thermal coal, Russia, fell to a new multi-year low.

Russian deliveries in the first six months of 2015 were 5.19 million mt, 43% down on a year earlier.

Sources have said that this depletion in imports has led to more competitive offers of Russian coal in the Europe-delivered spot market recently.

Larger Panamax cargoes of Russian coal have also been offered competitively into tenders in the Mediterranean, and have even been shipped to Turkey from Baltic ports in addition to smaller vessels working the more established Black Sea route.

Cargoes from Colombia -- the second largest provider of thermal coal to the UK -- in H1 2015 were 3.22 million mt, 26% lower than the corresponding 2014 period.

source: http://www.platts.com