• 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
  • 1 hour Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 2 hours Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 26 mins Total nonsense in climate debate
  • 39 mins 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.
  • 22 hours IMO 2020 could create fierce competition for scarce water resources
  • 12 hours Theresa May to Step Down
  • 1 day Devastating Sanctions: Iran and Venezuela hurting
  • 1 day IMO2020 To scrub or not to scrub
  • 3 hours Will Canada drop Liberals, vote in Conservatives?
  • 1 day Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 4 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.
  • 4 hours Canada's Uncivil Oil War : 78% of Voters Cite *Energy* as the Top Issue
  • 1 day Level-Headed Analysis of the Future of U.S. Shale Oil Industry
Alt Text

This Supermajor Is Leading The Energy Sector

This supermajor has been standing…

Alt Text

How To Play A Recovery In Oil Prices?

A realistic correction in the…

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




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