• 4 minutes England Running Out of Water?
  • 7 minutes Trump to Make Allies Pay More to Host US Bases
  • 10 minutes U.S. Shale Output may Start Dropping Next Year
  • 14 minutes Washington Eyes Crackdown On OPEC
  • 1 min One Last Warning For The U.S. Shale Patch
  • 13 hours Once Upon A Time... North Korea Abruptly Withdraws Staff From Liaison Office
  • 14 hours Oil Slips Further From 2019 Highs On Trade Worries
  • 6 hours Modular Nuclear Reactors
  • 1 day Chile Tests Floating Solar Farm
  • 14 hours Poll: Will Renewables Save the World?
  • 7 hours Climate change's fingerprints are on U.S. Midwest floods
  • 2 days China's E-Buses Killing Diesel Demand
  • 2 days China's Expansion: Italy Leads Europe Into China’s Embrace
  • 9 hours Read: OPEC THREATENED TO KILL US SHALE
  • 2 days Biomass, Ethanol No Longer Green
  • 2 days Trump Tariffs On China Working
  • 1 day US-backed coup in Venezuela not so smooth
  • 2 days New Rebate For EVs in Canada
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