• 5 minutes Mike Shellman's musings on "Cartoon of the Week"
  • 11 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 2 days The Discount Airline Model Is Coming for Europe’s Railways
  • 22 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 10 hours Starvation, horror in Venezuela
  • 1 day Pakistan: "Heart" Of Terrorism and Global Threat
  • 17 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 18 hours Saudi Fund Wants to Take Tesla Private?
  • 2 days Venezuela set to raise gasoline prices to international levels.
  • 1 day Are Trump's steel tariffs working? Seems they are!
  • 3 hours Corporations Are Buying More Renewables Than Ever
  • 2 days WTI @ 69.33 headed for $70s - $80s end of August
  • 2 days Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 10 hours China goes against US natural gas
  • 11 hours Why hydrogen economics does not work
Alt Text

Chinese Mining Giant To Ramp Up Copper Production

Chinese mining giant MMG expects…

Alt Text

Is Nigeria Moving From Oil Into Gold?

Nigeria is looking to diversify…

Dave Forest

Dave Forest

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

More Info

Trending Discussions

Why Are Exports of This Key Commodity Down 56%?

The globe continues to see major structural changes in one particular commodity market these days.

Thermal coal.

Over the last few years, production has been rising rapidly from places like Indonesia and Australia. Recently overwhelming increasing demand from markets like India and Japan--and resulting in a fall in worldwide prices, back to multi-year lows.

That's now causing a number of additional shifts. With miners in Indonesia, for example, reportedly struggling to stay alive in many cases, after seeing profit margins squeezed to nothing.

And we got another "sign of the times" in the space this week. From the coal export market that lies closest at hand to major consuming nations in Asia.

That's Canada. Where numbers show that coal exports are tumbling, as the market continues to realign itself.

The figures come from the Ridley Terminal in Prince Rupert, on Canada's west coast. With the terminal reporting that its August coal exports fell 56%, compared to year-ago levels--to just over 462,000 tonnes on the month.

The drop was largely caused by thermal coal shipments, which plunged 81.5% to just over 80,000 tonnes. Metallurgical coal shipments also dropped by 41%, to 305,000 tonnes.

This is an especially telling data point given that the Ridley Terminal is the closest North American export point to Asia. Suggesting that key Asian markets are reducing their purchases of North American coal.

This may simply be a matter of economics. With potentially better-prices coal being available from low-cost producing nations like Indonesia.

It may also have to do with uncertainty prevailing in the market right now over coming changes to China's coal import laws. Which reportedly may ban shipments of certain lower-quality coals.

Whatever the reason, this is one more sign that the coal market is going through some big changes. Which of course is challenging for producers seeing lower demand, as Canadian and U.S. suppliers appear to be. But it could also be an opportunity for well-positioned producers to grab more market share--especially given that coal demand is still strong and rising in key markets like India.

Here's to getting the right coal to the right place,

Dave Forest




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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