US Coal Exports Show Upward Trend in Initial Six Months of the Year

During the initial half of the current year, the United States witnessed a noteworthy surge in coal exports, particularly to India. The data indicates a substantial increase of 52.5 percent compared to the previous year, with a total shipment of 6.2 million metric tons. The majority of this exported volume is believed to consist of North Appalachian coal with a NAR energy content of 6,900 kcal/kg. This coal is primarily destined for utilization in the cement and brick kiln industries.

In the month of June alone, the US coal exports to India reached 836,000 metric tons, marking a year-on-year growth of 12.3 percent. This export volume exclusively departed from the port of Baltimore, Maryland.

Notably, due to operational constraints at ports on the US East Coast, particularly Baltimore and Hampton Roads, a portion of North Appalachian coal is presently being transported by barge to the port of New Orleans for subsequent export to India.

In contrast to the positive trajectory in exports to India, shipments to several European destinations have experienced declines in the first half of the year. Exports to Poland notably decreased by 21.3 percent to 227,000 metric tons, while exports to the UK plummeted by a staggering 74.5 percent to 197,000 metric tons. Demand in the Polish market has been focused on sized coal, primarily sourced from Colombia or Kazakhstan, potentially limiting immediate opportunities for increased US sales.

France, however, emerged as an exception to this trend, with coal exports from the US surging to 254,000 metric tons during the same period. Ship-tracking data indicates a substantial portion of this coal was delivered to the EDF-operated Cordemais hard-coal power plant.

In the Amsterdam-Rotterdam-Antwerp (ARA) market, US high-sulfur Illinois Basin coal has gained competitiveness, particularly since the waning interest in high-sulfur products from Europe. European utilities have been blending Illinois Basin and North Appalachian coal with low-sulfur Russian coal. However, due to changing circumstances, this practice is no longer viable, contributing to the shift in market dynamics.

The cost analysis reveals that the landed price of high-sulfur Illinois Basin coal in the ARA market was $93.38 per metric ton in early August. In comparison, low-sulfur high-calorific value coal from the Central Appalachian region stood at $115.93 per metric ton.

Export figures to South Korea reveal a 33.8 percent decline, with a total of 905,000 metric tons received from US ports, coupled with a 46.6 percent drop in imports from Westshore, amounting to 2 million metric tons. Operational issues along the railway serving Westshore have affected export capacity throughout the year, causing challenges for producers in Montana. However, Westshore coal exports demonstrated a 19 percent year-on-year increase in July, amounting to 443,000 metric tons, and a 6 percent rise to 751,000 metric tons in exports to South Korea.