Weekly SA coal report
Coal prices came down to earth in a sustained sell-off last week, as the market tried to find a level amidst falling global natgas prices and Chinese domestic coal prices. Demand destruction, price caps and forced shutdowns of some parts of Chinese industry have helped reign in runaway makets.
Beijing officials have been cracking down on coal futures speculation and encouraging miners to produce at full tilt, despite safety concerns, in a measured response to recent prices. The government is also taking a firm stance against those hoarding coal as a cold winter looks to be on the cards.
The measured response has also seen metals prices cool off, although magnesium production is also lower on weaker industrial intensity, leading to a spike in price and risk to vehicle supplies going forward.
Freight prices continue firm as a lack of containers is leading sugar and rice shippers – amongst others – to return to dry bulkers, while Capesize congestion in Pacific markets continues.
An expected freezing winter in North America and Europe could see further strain being put on global supply chains and energy supply. However, some US grid operators are restricting coal-fired plants from operating if their fuel supplies fall below certain levels, to ensure coal will be available in the case of a deep freeze later on.
In an interesting development, Eskom has signed a memorandum of understanding with coal suppliers Exxaro Resources and Seriti Resources to develop their own renewable energy projects. A really innovative approach could be to simply deliver kilowatt-hours to Eskom, the choice of whether it was delivered in coal or power being up to the miner or independent power producer concerned.
Agri-PV could be a very healthy and positive trend for coal miners – and their communities – going forward.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...
VISIT SHOWROOM
Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
