Connection

popular articles

Freja Offshore: Construction permit application for Mareld wind farm
Storm Helene Forces Shutdown of Southern Company and Duke Energy Units
Uzbekistan invests $1.3 billion in waste-to-energy projects
Japan: electricity prices rise 3% in the face of record demand
US Sanctions Prompt 33% Increase in Turkey’s LNG Imports

Derailment in South Africa: coal exports impacted

A derailment in South Africa interrupts coal exports, raising concerns about supply and prices.

Please share:

The derailment of Train 6000, maneuvering at VHO, has led to the closure of both rail lines until further notice. Transnet Freight Rail, the main logistics operator for South African exports, has not given a deadline for restoring services. This derailment comes at a time when South African thermal coal exports to India are holding steady thanks to stable demand from the Indian sponge iron sector.

Impact on coal prices

South African thermal coal prices are set to rise in the short term due to uncertainties surrounding the resumption of rail services. According to S&P Global Commodity Insights, the price of Richards Bay FOB coal at 5,500 kcal/kg NAR reached $93.95/mt on May 20, up $1/mt since May 17. Pranay Shukla, head of bulk freight and commodities research at Commodity Insights, estimates that the derailment could reduce thermal coal shipments by 700,000-800,000 mt this month, lowering the Richards Bay Terminal (RBCT) shipment forecast from 4.5-4.8 million mt to 3.8-4.0 million mt.

Stock analysis and market outlook

Coal inventories at the RBCT fell from 2.2 million mt the previous week to 2.1 million mt on May 20. However, this price rise may not last, as Indian demand is set to slow as the monsoon season approaches. The absence of European demand has enabled price-conscious Indian buyers to increase their purchases of South African thermal coal, accounting for almost 50% of total exports.

Market reactions and future impact

Some market participants believe that Indian demand will not be sufficient to keep prices high. An India-based trader said that sponge iron prices and the onset of the monsoon season are reducing demand. An American trader specializing in South African thermal coal added that, with demand from India low, the derailment was unlikely to have a significant impact on the market. Similar incidents in 2023 did not result in a major drop in South African exports, suggesting that the current impact could also be limited.
The derailment in South Africa could temporarily disrupt thermal coal exports and cause prices to rise. However, fluctuations in Indian demand, combined with the historical stability of exports despite similar incidents, suggest that the long-term impact could be limited.

Register free of charge for uninterrupted access.

Publicite

Latest news

Enlight secures $773 mn for Country Acres solar project in California
Subsea7 secures contract up to $150M for Northern Lights in Norway
The decarbonisation market will surpass $4.7tn by 2033
Uganda finalizes historic agreement to build Hoima oil refinery
Nigerian oil giant NNPC prepares imminent stock market debut

Recently published in

Glencore challenged over major discrepancies in methane emissions at Australian mine

An independent study suggests that the Hail Creek mine may emit up to eight times more methane than reported in Glencore's official disclosures.
Eskom adds 800 MW to South Africa’s grid with Kusile Unit 6
Eskom has connected Unit 6 of the Kusile coal-fired power station, adding 800 MW to the national grid amid efforts to stabilise electricity supply in South Africa.
en_1140290948540-17
Eskom adds 800 MW to South Africa’s grid with Kusile Unit 6
Eskom has connected Unit 6 of the Kusile coal-fired power station, adding 800 MW to the national grid amid efforts to stabilise electricity supply in South Africa.
en_1140290948540-17
India Proposes the Creation of a Coal Exchange for the Domestic Market
The Indian government presents a project to create a coal exchange for the domestic market, a measure aimed at improving transparency and regulating the local coal market.
en_1140290946540-10
India Proposes the Creation of a Coal Exchange for the Domestic Market
The Indian government presents a project to create a coal exchange for the domestic market, a measure aimed at improving transparency and regulating the local coal market.
en_1140290946540-10
The United States withdraws from energy transition plan with South Africa
The United States has announced its withdrawal from the Just Energy Transition Partnership with South Africa, thereby reducing the country’s international financial commitments in its gradual exit from coal.
en_1140290960540-5
The United States withdraws from energy transition plan with South Africa
The United States has announced its withdrawal from the Just Energy Transition Partnership with South Africa, thereby reducing the country’s international financial commitments in its gradual exit from coal.
en_1140290960540-5

Indonesia introduces a reference price to regulate its coal market from March 2025

Indonesia sets a floor price for coal to strengthen its control over domestic prices and influence international markets. This new strategy will take effect on March 1, 2025.
Indonesia: Growing Dependence on Coal Undermines Climate Commitments
Indonesia continues to strengthen its dependence on coal, jeopardizing its greenhouse gas emission reduction commitments. This paradox is highlighted in a recent report, emphasizing the tension between environmental goals and economic realities.
en_1140290951540-12
Indonesia: Growing Dependence on Coal Undermines Climate Commitments
Indonesia continues to strengthen its dependence on coal, jeopardizing its greenhouse gas emission reduction commitments. This paradox is highlighted in a recent report, emphasizing the tension between environmental goals and economic realities.
en_1140290951540-12
BHP Reports Strong Demand Despite Falling Mineral Prices
Australian mining giant BHP saw its net profit multiply fivefold, reaching $4.4 billion, despite an 8% drop in revenue. Sustained demand and signs of recovery in China strengthen its outlook.
en_1140290945540-11
BHP Reports Strong Demand Despite Falling Mineral Prices
Australian mining giant BHP saw its net profit multiply fivefold, reaching $4.4 billion, despite an 8% drop in revenue. Sustained demand and signs of recovery in China strengthen its outlook.
en_1140290945540-11
China starts new coal plants, jeopardizing its climate goals
In 2024, China began building new coal power plants, a decision that threatens its goal of reaching peak carbon emissions by 2030, according to a report published by the Centre for Research on Energy and Clean Air (Crea) and Global Energy Monitor (GEM).
en_1140290953540-10
China starts new coal plants, jeopardizing its climate goals
In 2024, China began building new coal power plants, a decision that threatens its goal of reaching peak carbon emissions by 2030, according to a report published by the Centre for Research on Energy and Clean Air (Crea) and Global Energy Monitor (GEM).
en_1140290953540-10

Historic Reduction of Coal Share in Australia’s Energy Mix by End of 2024

By the end of 2024, coal's share in Australia's electricity generation dropped below 50%, a historic first, thanks to the surge in solar energy production.
Ukraine Offers Coal to Address Energy Crisis in Transnistria
In the midst of prolonged tensions with Russia, Ukraine offers to provide free coal to Transnistria, a pro-Russian region of Moldova, to alleviate an energy crisis worsened by the cutoff of Russian gas supplies.
en_1140290949540-1
Ukraine Offers Coal to Address Energy Crisis in Transnistria
In the midst of prolonged tensions with Russia, Ukraine offers to provide free coal to Transnistria, a pro-Russian region of Moldova, to alleviate an energy crisis worsened by the cutoff of Russian gas supplies.
en_1140290949540-1
The closure of the Pokrovsk mine: a major blow to Ukraine’s economy and defense
The Pokrovsk mine, Ukraine's sole coke producer, closes under Russian military pressure. This decision threatens the steel industry, the economy, and Ukraine's strategic logistics.
en_11401267540
The closure of the Pokrovsk mine: a major blow to Ukraine’s economy and defense
The Pokrovsk mine, Ukraine's sole coke producer, closes under Russian military pressure. This decision threatens the steel industry, the economy, and Ukraine's strategic logistics.
en_11401267540
China and the Future of Coal: A Plateau at 8.77 Billion Tonnes by 2027
As coal reaches a historic peak in 2024, renewable energy reshapes global dynamics. In China, where one-third of the world’s coal is consumed, the energy transition remains a pivotal factor for the sector's future.
en_11401236540
China and the Future of Coal: A Plateau at 8.77 Billion Tonnes by 2027
As coal reaches a historic peak in 2024, renewable energy reshapes global dynamics. In China, where one-third of the world’s coal is consumed, the energy transition remains a pivotal factor for the sector's future.
en_11401236540

China Plans 330 Million Tons of Coal Imports in 2025

China confirms its central role in the Asian coal market with a forecast of 330 million tons of coal imports in 2025, according to an Australian report.
Australia Projects 163 Million Tons of Metallurgical Coal Exports for 2024-25
Australia revises its metallurgical coal export forecast to reach 163 million tons for the 2024-25 fiscal year. However, revenues are expected to decline due to falling global market prices.
en_11401008540
Australia Projects 163 Million Tons of Metallurgical Coal Exports for 2024-25
Australia revises its metallurgical coal export forecast to reach 163 million tons for the 2024-25 fiscal year. However, revenues are expected to decline due to falling global market prices.
en_11401008540
Global coal demand reaches record in 2024 but stabilizes until 2027, says IEA
Global coal demand peaked at 8.77 billion tons in 2024. Thanks to the rise of renewable energy, it is expected to stabilize by 2027, according to the International Energy Agency (IEA).
en_1140951540
Global coal demand reaches record in 2024 but stabilizes until 2027, says IEA
Global coal demand peaked at 8.77 billion tons in 2024. Thanks to the rise of renewable energy, it is expected to stabilize by 2027, according to the International Energy Agency (IEA).
en_1140951540
The Binchang Project: The 660 MW Ultra-Supercritical CFB Boiler Reignites the Debate on Coal’s Future
In China, Harbin Electric Corporation inaugurates a 660 MW ultra-supercritical coal-fired CFB boiler, blending technological innovation and ecological management. A project that raises questions as coal declines globally.
en_1140892540
The Binchang Project: The 660 MW Ultra-Supercritical CFB Boiler Reignites the Debate on Coal’s Future
In China, Harbin Electric Corporation inaugurates a 660 MW ultra-supercritical coal-fired CFB boiler, blending technological innovation and ecological management. A project that raises questions as coal declines globally.
en_1140892540

Chinas Coal Imports in November Rise by 19% Thanks to Long-Term Contracts

China's coal imports increased by 19% in November compared to October, reaching nearly 55 million tons. This growth is driven by stable supply from long-term contracts, despite muted spot demand.
Indonesia Faces the Colossal Challenge of a Coal-Free Energy Transition
President Prabowo Subianto commits to eliminating coal power plants by 2040, marking an unprecedented ambition. This radical shift poses significant technical and financial challenges as the country remains heavily reliant on coal.
en_1140832540
Indonesia Faces the Colossal Challenge of a Coal-Free Energy Transition
President Prabowo Subianto commits to eliminating coal power plants by 2040, marking an unprecedented ambition. This radical shift poses significant technical and financial challenges as the country remains heavily reliant on coal.
en_1140832540
Bosnia faces the coal challenge between dependence and environmental pressures
Bosnia faces the coal challenge between dependence and environmental pressures
en_1140643540
Bosnia faces the coal challenge between dependence and environmental pressures
Bosnia faces the coal challenge between dependence and environmental pressures
en_1140643540
China Targets Peak Coal Consumption by 2025: A Major Energy Transition Milestone
China, the world's largest emitter of greenhouse gases, is expected to reach its peak coal consumption by 2025, according to a recent report. This represents a key step toward energy transition despite the challenges of a rapidly growing economy.
en_1140620540
China Targets Peak Coal Consumption by 2025: A Major Energy Transition Milestone
China, the world's largest emitter of greenhouse gases, is expected to reach its peak coal consumption by 2025, according to a recent report. This represents a key step toward energy transition despite the challenges of a rapidly growing economy.
en_1140620540

Turkish miners in protest: 500 workers occupy a coal mine against privatization

In Ankara Province, Turkey, 500 miners occupy a coal mine to protest a privatization project, fearing job losses and worsening working conditions.
Cordemais Coal Plant: Worker Strike Highlights Uncertain Future
The restart of the Cordemais coal plant, planned to address the cold wave, has been halted by a strike. Workers oppose the scheduled closure and demand guarantees for their future.
en_1140544540
Cordemais Coal Plant: Worker Strike Highlights Uncertain Future
The restart of the Cordemais coal plant, planned to address the cold wave, has been halted by a strike. Workers oppose the scheduled closure and demand guarantees for their future.
en_1140544540
COP29: 25 countries commit to ending the construction of new coal power plants
At COP29 in Baku, 25 nations, including the United Kingdom and Australia, pledged to stop building coal power plants. This initiative aims to curb global warming despite a 2% increase in global coal capacity in 2023.
en_1140553540
COP29: 25 countries commit to ending the construction of new coal power plants
At COP29 in Baku, 25 nations, including the United Kingdom and Australia, pledged to stop building coal power plants. This initiative aims to curb global warming despite a 2% increase in global coal capacity in 2023.
en_1140553540
U.S. Thermal Coal Markets Bolstered by Rising Global Demand in 2025
Global and domestic coal consumption could support U.S. thermal coal markets in 2025, driven by increased demand in Asia and Europe, despite challenges linked to the energy transition.
en_1140476540
U.S. Thermal Coal Markets Bolstered by Rising Global Demand in 2025
Global and domestic coal consumption could support U.S. thermal coal markets in 2025, driven by increased demand in Asia and Europe, despite challenges linked to the energy transition.
en_1140476540

Advertising

LEGAL

FOSSILS

POLICY

RENEWABLE

PLUS

VERVANT

Welcome

Your subscription

Included in this subscription:

COMMUNICATE ON ENERGYNEWS