• 4 minutes Projection Of Experts: Oil Prices Expected To Stay Anchored Around $65-70 Through 2023
  • 7 minutes Oil prices forecast
  • 11 minutes Algorithms Taking Over Oil Fields
  • 14 mintues NIGERIAN CRUDE OIL
  • 3 hours UK, Stay in EU, Says Tusk
  • 7 hours Socialists want to exorcise the O&G demon by 2030
  • 1 hour How Is Greenland Dealing With Climate Change?
  • 3 hours Blame Oil Price or EVs for Car Market Crash? Auto Recession Has Started
  • 4 hours Venezuela continues to sink in misery
  • 2 hours German Carmakers Warning: Hard Brexit Would Be "Fatal"
  • 4 hours WSJ: Gun Ownership on Rise in Europe After Terror Attacks, Sexual Assaults
  • 1 day Regular Gas dropped to $2.21 per gallon today
  • 1 day China Car Sales Plummet: Can Musk Unshovel His Groundbreaking?
  • 1 day BofA Sees Oil at $35-70
  • 5 hours Trump inclined to declare national emergency if talks continue to stall - Twitter hides this as "sensitive material"
  • 10 hours Orphan Wells
  • 11 hours Solid-State Batteries
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




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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