SUBSCRIBE
PROFILE

Derailment in South Africa: coal exports impacted

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

Share:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

START NOW — 4.90$/month

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

SUBSCRIBE — 99$/year

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

Sign up for free to unlock this article

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.

  • Popular on energynews.pro
Ukraine plans to increase gas imports by 30% after Russian strikes
Spanish solar producers warn of impact from negative electricity prices
JANAF and MOL begin crucial talks on Central European oil transport
Ameresco signs $197mn contract to modernise NRL’s energy infrastructure
Ares Management acquires 49% stake in US energy portfolio from EDPR
Queensland coal mining costs remain high despite falling prices
Queensland coal producers are struggling to rein in costs, which remain above pre-2022 levels as the impact of royalty hikes and margin pressures continues to weigh on the sector.
Coal expected to surpass natural gas this winter in two U.S. markets
Coal will temporarily become the main source of electricity in the Midwest markets MISO and SPP during winter, according to the latest federal forecasts.
Washington eases regulation to revive coal extraction
The Trump administration plans to open millions of federal hectares to coal and ease environmental rules governing this strategic industry.
South Africa opens rail sector to private players to boost coal exports
The integration of private operators into South Africa’s rail network marks a turning point for coal exporters, with a target of 55 million tonnes exported in 2025 from the Richards Bay terminal.
Russia shifts coal exports toward Asia, expert says
Facing Western restrictions, Russia plans to increase coal deliveries to China, India and Turkey, according to a recent presentation on the sector’s outlook.
Shanghai Electric strengthens energy investments in Pakistan with $3bn project
The visit of the Pakistani president to Shanghai Electric marks a new strategic phase in China-Pakistan energy cooperation, centred on the Thar mining and power project and local skills development.
Russia and Indonesia overtake Australia in South Korea’s thermal coal supply
Port congestion in Australia has boosted Russian and Indonesian coal exports to South Korea, with both now dominating the market due to lower prices and reliable delivery schedules.
JSW restarts coal output with two new longwalls in September
Polish state-owned producer JSW confirms its 13.4 million tonnes production target for 2025 thanks to new equipment coming online, despite recent disruptions at multiple sites.
Australian port congestion reshapes coal flows to South Korea
Russia and Indonesia overtook Australia as South Korea's top thermal coal suppliers in August, driven by lower prices and more reliable logistics amid persistent Australian shipment delays.
Uniper demolishes 116-metre cooling tower at Scholven site
Uniper has demolished cooling tower F at its Scholven power plant, marking a new stage in the dismantling of the Gelsenkirchen coal site, where the energy company plans to build a hydrogen-ready gas-fired plant.
Australian coal exposes global steelmakers to hidden climate risk
Underreported methane emissions from Australian mines could increase steelmakers’ carbon footprint by up to 15%, according to new analysis highlighting major gaps in global supply chains.
Russia targets 30 million tons of coal transported via Pacific Railway by 2026
The new Russian railway line linking the Elga mine to the Sea of Okhotsk port will reach full capacity in 2026, after an operational testing phase scheduled for 2025.
Romania negotiates with Brussels to extend coal plants until 2031
The Romanian government is asking the European Union for a five-year delay on the closure of 2.6 gigawatts of coal capacity, citing delays in bringing gas and solar alternatives online.
Colombia: Petro blocks coal to Israel in a political showdown
President Gustavo Petro bans all coal exports to Israel, a decision with minor energy effects but strong diplomatic weight, illustrating his anti-Americanism and attempts to reshape Colombia’s domestic politics.
India diversifies coking coal purchases, Australia retreats
India’s coking coal imports are rising and increasingly split between the United States and Russia, while Australian producers redirect volumes to China; 2025 results confirm a shift in trade flows.
China: 25 GW of coal approved in H1 2025, commissioning surges
China approved 25 GW in H1 2025 and commissioned 21 GW; the annual total could exceed 80 GW. Proposals reached 75 GW and coal’s share fell to 51% in June, amid declining imports.
Vitol and Breakwall finance $150M to support a metallurgical coal mine
Valor Mining Credit Partners completes its first major financing with a secured loan to strengthen the operational capacity of a U.S. mining site.
The U.S. Department of Energy Extends Operations of a Coal Plant in the Midwest
Amid tensions on the Midwest power grid, Washington orders the continued operation of the J.H. Campbell plant to secure electricity supply over the coming months.
Peabody cancels its $3.78 billion bid for Anglo’s coal mines
Peabody Energy abandons the acquisition of Anglo American’s Australian coal assets, triggering an arbitration process following the failure of a post-incident agreement at the Moranbah North mine.
Core Natural Resources reports USD220.2mn in cash flow and adjusts its financial policy
Core Natural Resources announces USD220.2mn in operating cash flow for the second quarter of 2025, while revising its capital return strategy and increasing post-merger synergies.