Aussie coal harbour (Australia) logjam worsens
The queue of ships waiting to load at Newcastle, Australia, the world's largest coal-export harbour, lengthened to a record 71, increasing delays and raising costs for producers and buyers of the fuel.
The number of ships queuing outside the port in New South Wales state as of early April 9 compares with 69 a week earlier and an average of 23 in 2006, according to Newcastle Port Corp data. The export price for power-station coal at the port rose to a seven-week high of 54.41 a metric tonne in the week ended April 6, according to the globalCOAL NEWC Index.
Companies such as Rio Tinto Group, BHP Billiton Ltd and Xstrata plc have increased shipments of coal after China cut exports to meet domestic demand. Transportation bottlenecks prevented miners from fulfilling orders, lengthening lines and increasing demurrage costs for buyers.
'I expect prices to stay in the US$52 to US$55 range,' said Andrew Harrington, a commodities analyst at Australia & New Zealand Banking Group Ltd, in Sydney. 'The issue of bottlenecks isn't going away and the picture for demand is fairly robust, so the vessels will keep coming.'
Almost 90 per cent of coal shipped through Newcastle last year was thermal coal produced in the Hunter Valley. The port accounts for about a third of Australia's coal-export capacity.
Last week, CIMB-GK Research Pte raised its estimates for Asian coal prices by 5.6 per cent to US$47.50 a metric tonne, citing increased demand from China and shipping delays at Australian ports. Transportation bottlenecks at Australian railway and port facilities have limited supply over the past three years, the report said.
China may increase imports because consumption is growing and domestic prices have risen, Mr Harrington said. China's demand for coal may rise to 2.6 billion tonnes in 2010, the National Development and Reform Commission said in its 11th five-year outlook for the coal industry published in January.
Hunter Valley coal producers voted in February to re-introduce export quotas at the port to better match capacity with demand and help reduce costs.
Ships waited an average of more than 27 days to load coal, compared with 0.33 days for general cargo ships, it said.
Fifteen ships carrying coal left Newcastle in the week ended April 7, two more than the previous week, Newcastle Port said yesterday in an e-mail report. Nine of the vessels headed to Japan, one each to Singapore and Mexico and Italy, and three to Taiwan, it said.
A total of 1.46 million tonnes was shipped in the week, from 1.05 million tonnes the previous week.
The number of ships queuing outside the port in New South Wales state as of early April 9 compares with 69 a week earlier and an average of 23 in 2006, according to Newcastle Port Corp data. The export price for power-station coal at the port rose to a seven-week high of 54.41 a metric tonne in the week ended April 6, according to the globalCOAL NEWC Index.
Companies such as Rio Tinto Group, BHP Billiton Ltd and Xstrata plc have increased shipments of coal after China cut exports to meet domestic demand. Transportation bottlenecks prevented miners from fulfilling orders, lengthening lines and increasing demurrage costs for buyers.
'I expect prices to stay in the US$52 to US$55 range,' said Andrew Harrington, a commodities analyst at Australia & New Zealand Banking Group Ltd, in Sydney. 'The issue of bottlenecks isn't going away and the picture for demand is fairly robust, so the vessels will keep coming.'
Almost 90 per cent of coal shipped through Newcastle last year was thermal coal produced in the Hunter Valley. The port accounts for about a third of Australia's coal-export capacity.
Last week, CIMB-GK Research Pte raised its estimates for Asian coal prices by 5.6 per cent to US$47.50 a metric tonne, citing increased demand from China and shipping delays at Australian ports. Transportation bottlenecks at Australian railway and port facilities have limited supply over the past three years, the report said.
China may increase imports because consumption is growing and domestic prices have risen, Mr Harrington said. China's demand for coal may rise to 2.6 billion tonnes in 2010, the National Development and Reform Commission said in its 11th five-year outlook for the coal industry published in January.
Hunter Valley coal producers voted in February to re-introduce export quotas at the port to better match capacity with demand and help reduce costs.
Ships waited an average of more than 27 days to load coal, compared with 0.33 days for general cargo ships, it said.
Fifteen ships carrying coal left Newcastle in the week ended April 7, two more than the previous week, Newcastle Port said yesterday in an e-mail report. Nine of the vessels headed to Japan, one each to Singapore and Mexico and Italy, and three to Taiwan, it said.
A total of 1.46 million tonnes was shipped in the week, from 1.05 million tonnes the previous week.