• 4 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 7 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 42 mins Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 4 hours Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 1 day IMO 2020 could create fierce competition for scarce water resources
  • 4 hours Total nonsense in climate debate
  • 5 hours IRAN makes threats, rattles sabre . . . . U.S. makes threats, rattles sabre . . . . IRAQ steps up and plays the mediator. THIS ALLOWS BOTH SIDES TO "SAVE FACE". Then serious negotiations start.
  • 1 day IMO2020 To scrub or not to scrub
  • 16 hours Theresa May to Step Down
  • 1 day Devastating Sanctions: Iran and Venezuela hurting
  • 7 hours Will Canada drop Liberals, vote in Conservatives?
  • 1 day Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 8 hours Canada's Uncivil Oil War : 78% of Voters Cite *Energy* as the Top Issue
  • 4 hours Apple Boycott in China
  • 8 hours Trump needs to educate US companies and citizens on Chinese Communist Party and People's Liberation Army. This is real ECONOMIC WARFARE. To understand Chinese warfare read General Sun Tzu's "Art of War" . . . written 500 B.C.
Alt Text

Investors Are Turning Their Back On Coal

Investors are increasingly looking away…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

Good News For Coal Exporters From The Unlikeliest Of Sources

The world saw a new number one supplier rise in a key commodity market this week.

And the identity will shock most investors.

The commodity is coal. Specifically, high-grade anthracite -- used in a both steelmaking and as thermal coal for power generation.

And the nation is North Korea. Which according to reports from Bloomberg this week has just become the world's top anthracite exporter.

The title of top exporter was previously held by Vietnam. At least up until the beginning of this year--when export patterns changed dramatically. Related: Schlumberger Vs. Halliburton: Which Is The Better Buy Right Now?

New data show that during January to May of 2015, coal exports from Vietnam into the key Chinese market dropped 91% year-on-year. With total shipments coming in at just 180,000 tonnes -- down from 2 million tonnes during the same period of 2014.

At the same time, North Korea's coal exports into China soared. Up 25%, to 7.5 million tonnes.

That's enough to make North Korea the new number one exporter of anthracite in the world. A trend that has some critical implications for global markets. Related: Here’s How To Play Low Oil Prices

Vietnam's coal supply is unlikely to return to the market anytime soon. With the country building a number of new power facilities that will take up the bulk of its domestic coal production -- and perhaps require additional imports.

That's seen Vietnam's coal shipments into China drop to nearly zero. Down from over 2 million tonnes monthly as recently as late 2012.

That's obviously a lot of supply lost from the market. A gap that North Korea has been stepping up to fill. Related: Bankruptcies Starting To Pile Up In Coal Industry

In fact, North Korea was the only country to increase coal exports to China so far this year. With the nation passing Mongolia and Russia to become the number three supplier to Chinese consumers, after Australia and Indonesia.

That's good news for Chinese buyers. But not so much for the rest of the world -- with most nations being prohibited from buying supplies from North Korea, due to sanctions.

We thus have a situation where supply may now get a lot tighter for coal buyers outside of China. Which could be a boost for producers who can sell into markets like South Korea, Japan, Taiwan, and India.

Here's to an unlikely supplier,

Dave Forest

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News