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Australian hard coking coal prices were down almost 3 percent on the week, with both the FOB Australian index and CFR China index now priced at $306/mt.
WoW: FOB Aus -2.6%, CFR China -2.7%
MoM: Fob Aus -3.0%, CFR China -3.0%
YoY: Fob Aus -16.7%, CFR China -21.0%
Metallurgical price relativities remain widely dispersed:
Seaborne thermal coal indexes bounced materially this week on the back of increased Russian export sanctions.
WoW: API2 +14.5%, NEWC +9.0%, S. Africa +6.0%
MoM: API2 +8.7%, NEWC +13.4%, S. Africa +7.7%
YoY: API2 -18.8%, NEWC -28.0%, S. Africa -23.5%
Ocean Freight prices diverged this week, with USEC to India now more expensive than USEC to China.
The Coal Trader Premium Updates
Alpha Post-Earnings Thoughts (or linked here)
Alpha Earnings Call Notes (website only, linked here)
Warrior Post-Earnings Thoughts (or linked here)
Warrior Earnings Call Notes (website only, linked here)
Coming Soon from The Coal Trader:
Waiting on Ramaco’s Earnings Call
Launch of The Coal Portfolio. This will be a coal only, long/short, fund which I manage in order to see if I can outperform the new COAL etf. I will allocated according to my Equity Research Assessments for medium and long-term time horizons only. No short term or options trading for this one.
Weekly News & Summary
Here’s the weekly rundown of the most important Coal News and Market information which I’ve curated for free and paid subscribers.
Earnings Updates:
Alpha Metallurgical Resources Announces Strong Fourth Quarter and Full Year 2023 Results
Yancoal Australia Reports Lower Profit Despite Increased Production in 2023
Stanmore Resources Strengthens Balance Sheet and Increases Production After Major Acquisition
Producers Making Moves:
South32 Sells Illawarra Coal Project for $1.65 Billion to Focus on Copper and Zinc
BlueScope considers tilt at South32 mines to pre-empt $2.5b sale
Hallador Energy Restructures Sunrise Coal Division to Reduce Operating Costs
Futura Resources Starts Production at New Queensland Coal Mine
American Consolidated Natural Resources to Idle Pride Mine in Kentucky
Met Coal Updates:
Warrior Met Coal’s Ballooning Development Costs Prompt RBC Capital To Rethink Projections
Private Credit Dominates Whitehaven Coal’s $1.1 Billion Loan
More coal asset sales on the cards as South32 gets cracking price for Illawarra Coal
Thermal Coal Updates:
New US sanctions more likely to curb Indian imports of Russian coal
Indonesia & South Africa aim to regain lost share in Indian coal market
Uniper Says Germany Will Struggle to Meet 2030 Coal-Exit Goal
Steel Updates:
For those who want more coal analysis and content, check it out here. I’m offering a discount for all TheCoalTrader readers, use code TCT2000 for 15% off the Annual Premium Bundle.
Please let me know if you have any questions with regards to strategy and positioning, or anything coal related. I try to answer every question for subscribers.
Nothing in this Site constitutes professional and/or financial advice, nor does any information on this Site constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. The author of this Site is not a fiduciary by virtue of any person's use of or access to this Site or its Content.
Keen to hear more about The Coal Portfolio!