Newcastle’s Coal Exports Perform Well Despite China’s Ban, Various Price Indexes Show | Maitland Mercury



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Regardless of climate concerns about its long-term future, thermal coal shipped from Newcastle has sold for up to US $ 120 ($ 162) per tonne. Coal export tonnages are down significantly this year, mainly, according to official statistics, due to the Chinese embargo on Australian coal. But the price hikes are making up for the volume cuts, and the Chinese ban may not have as much of an impact on Australian industry as expected, with reports that countries selling to China on our behalf must then buy Australian coal. to fill their own deficits. The Reuters news agency reported earlier this month that Newcastle’s high-quality 6,000-kilocalorie coal hit a spot price of $ 121.40 per tonne earlier this month, up from ‘about $ 20 a tonne in a single month. Iron ore prices have also skyrocketed, reaching US $ 215 ($ 290) per tonne in recent days, double the price of a year ago. The Chinese government complained about the price of the two commodities, and Reuters reported on Friday that the country’s “state planner” and its “market regulator” have launched a joint investigation into coal prices and the allegations of speculation and hoarding of coal supplies. Reuters said sub-5,500 kilocalorie-grade coal had sold in China for nearly $ 140 ($ 189) a tonne, prompting “China’s coal price indexes to suspend publication of daily estimates with the aim of stabilizing prices “. By comparison, the same quality coal had sold in Newcastle for less than US $ 60 ($ 81) a tonne in recent months. The price increases in turn fueled the stock prices of at least some coal producers. Gunnedah Basin producer Whitehaven has seen its share price more than double since August last year, from under $ 1 to over $ 2 recently, although those quotes are well below the 5.80 $ that its stock was trading at its most recent high in mid-2018. However, China-backed Newcastle exporter Yancoal saw its share price drop from around $ 2.40 in January to just over $ 2 recently. China’s ban on Australian coal follows the Australian government’s call for an investigation into the origins of COVID-19, as relations between the two countries have cooled significantly since then.



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