There was an upturn in thermal and semi-soft coal shipments to China from Port Waratah Coal Services' Australian coal terminals at Newcastle port in September to 2.61 million mt, up 16.5% on August's shipments of 2.24 million mt, Port Waratah Coal Services said Monday in an operating report.
China was the destination for 28.25% of the 9.25 million mt of coal exports shipped from the PWCS terminals at Newcastle port in September, up from 25% in August, according to PWCS shipping data.
A Panamax ship bound for Hong Kong loaded 74,000 mt of cargo at the PWCS facility in September, effectively putting China's percentage share of PWCS coal exports at 29.05%.
Newcastle coal shipments from the PWCS terminals to China have averaged 2 million mt/month this year to date, although shipments did slip to 1.34 million mt in May.
Prices for Newcastle thermal coal with a calorific value of 5,500 kcal/kg NAR and ash content of 23% on an as-received basis have traded below $70/mt FOB since crossing below this point in late June.
This is the grade of Newcastle thermal coal preferred by Chinese buyers, while Japanese buyers favor Newcastle thermal coal with a higher calorific value of around 6,080 kcal/kg NAR. JAPAN, SOUTH KOREA
Less coal was shipped by the PWCS terminals to Japan last month at 4.66 million mt, down from 4.75 million mt in August, although Japan still accounted for 50% of Port Waratah's coal shipments in September.
Japan books the majority of its coal imports on year-to-year contracts for which prices are set periodically throughout the year, in contrast to Chinese buyers who operate almost exclusively on a hand-to-mouth basis.
South Korean buyers also took less coal from the PWCS terminals in September at 831,000 mt or 9% of last month's total, compared with its shipment total of 948,000 mt in August and a 10.5% market share.
Taiwan-bound ships loaded 904,000 mt of coal exports at the PWCS terminals last month, equivalent to 9.7% of the month's total, up from 598,000 mt in August.
Mexico reappeared as a significant buyer of Newcastle thermal coal in September after an absence of seven months. Ships loaded 132,000 mt of cargo at the PWCS terminals last month for the voyage across the Pacific Ocean to Mexico.
Thermal coal accounted for 7.77 million mt of Port Waratah?s terminals' throughput in September, or 84% of the total. The remaining 16% was semi-soft coking coal comprising 1.48 million mt, said PWCS in its report.
Export data for another coal terminal at Newcastle port, the 66 million mt/year NCIG terminal operated by the Newcastle Coal Infrastructure Group is not published on a regular basis.