Coal news and updates

Slow 2023 start for Australia's Queensland coal exports

Shipments from the four key Queensland coal ports fell to a six-month low in January and are set to fall further in February on the impacts of flooding and a train derailment.

The ports of Hay Point, Dalrymple Bay Coal Terminal (DBCT), Abbot Point and Gladstone shipped 15.45mn t in January, down from 17.12mn t in December and from 15.87mn t in January 2022, according to port data. Flooding in northern Queensland cut deliveries to Hay Point, DBCT and Abbot Point in January, with the impact continuing into early February.

February shipments will also be cut by a derailment outside of Gladstone that closed the Blackwater rail line on 29 January, with reopening expected by 12 February. This slow start to 2023 does not bode well for Queensland coal shipments making up for the supplies lost in 2022, which was its lowest exporting year since 2012.

The La Nina weather pattern is easing, which should bring drier weather to onshore Queensland, which was spared the impact of tropical cyclone Gabrielle as it tracked to the east of the state. But ships were moving off anchorage at Hay Point and DBCT on 9 February in expectation of strong coastal winds.

Ship queues are above average at Queensland coal ports, with 51 vessels queued off the adjacent ports of Hay Point and DBCT on 9 February, 11 off Abbot Point and 30 off Gladstone, compared with 37, 11 and 23 respectively on 16 January.

The restart of shipments to China is contributing to demand for Queensland coal, with Gladstone shipping cargoes destined for the country in January.

DCBT was the most affected by January's floods, with shipments of 3.46mn t or less than half its nameplate capacity of 7.08mn t/month. Exports from the 55mn t/yr Hay Point, which is operated by BHP Mitsubishi Alliance, were less affected despite being adjacent to DBCT. Abbot Point, which also had coal deliveries cut by the floods, had an above average January possibly as it made up for a weak December.

Argus assessed high-grade 6,000 kcal/kg NAR thermal coal at $249.79/t fob Newcastle on 3 February, down from $402.02/t on 6 January and from a peak of $444.59/t on 9 September. It assessed the premium hard low-volatile metallurgical coal price at $357.40/t fob Australia on 8 February, up from $314.75/t on 6 January and from $244.75/t on 24 November.