Richards Bay coal shortage puts heat on global prices
April 15, 2004
By Bloomberg
New York - Coal prices surged to a record amid concerns that Richards Bay coal terminal, the world's second-largest coal-export port, is struggling to keep up with demand because of insufficient rail services.
The port did not have enough coal on hand to load ships on time, producers said.
Richards Bay's stocks are about 2 million tons, down from the normal 3.5 million tons. The terminal shipped 2.6 percent less coal in March than a year earlier, a person familiar with the shipments said last week.
The globalCOAL RB index of coal from the Richards Bay terminal, delivered within three months, jumped $3.19 (R21) to $46.99 a metric ton last week.
The globalCOAL NEWC index, for coal from Australia's Newcastle port, last week rose 0.3 percent to $54.13 a ton.
Coal prices are rising in part because of concern that China, the world's biggest coal producer, will export less of the fuel this year as it supplies domestic customers.
Port congestion is increasing.
Newcastle Port, the world's biggest coal-export port, said 20 vessels carrying the fuel departed from the Australian harbour last week, one more vessel than a week earlier. A total of 65 ships stood off the port during the period, five more than in the previous week, Newcastle Port said.
Australia's competition regulator last week formally approved a proposal by Port Waratah Coal Services aimed at reducing ship queues at Newcastle until the end of 2004.
Mining companies using the port would be asked to curb their exports.
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