CIAB Market & Policy developments 2005/06 - IEA

© OECD/IEA, 2007
165. Australian coal exports rose by 5% to 243 Mt in 2006-07, with all of the increase being
in metallurgical coal shipments, which rose by 9% to 132 million tonnes. Thermal coal
exports remained static at 111 Mt. This constrained response from Australian suppliers
to buoyant international demand was due mainly to continuing shortfalls in rail and port
capacities in New South Wales and Queensland.
166. Steam coal exports from South Africa decreased to about 69 million tonnes in 2006 due
to rail problems and other logistical constraints, a decrease of 2.6 million tonnes on
2005. 88% of exports were destined for Europe, 5% Middle East, 4% Africa and 2% each
to Far East and South America. However, exports in the first half of 2007 have increased
as a result of excellent performance by the junior coal mines. The high coal prices once
more were reflected in increased coal export revenues of 21.7 billion Rand, 3% more
than in 2005.
167. The demand for imported coal rose in China. The closure of some Chinese mines in
response to safety concerns, together with wages pressure, resource taxes and
environmental levies on other operations, combined to constrain domestic coal
production and narrow the gap between Chinese and international coal prices.
168. World coking coal trade declined by 6 million tonnes to 222 million tonnes during 2006,
the majority being a decline in seaborne trade, which reached 204 million tonnes.
Exports from Indonesia increased by over 6 million tonnes, while all other exporters
suffered declines.
169. In 2006, Canada exported 24.6 million tonnes of coking coal, lower than the 26.8 Mt
exported in 2005. However, exports to Japan, Canada’s largest market, increased by
15% to 8.7 million tonnes. About 90% of Canada’s coal exports were seaborne and
shipped through coal terminals in Vancouver and the rest was shipped through the
Ridley Terminals in Prince Rupert, northern BC. Chart 6 illustrates the changes in 2006
coking coal trade by import region.
Chart 6 - Coking Coal Imports by Region
million tonnes
80
60
40
20
0
73
Japan
57 58 62
59
Other
Asia
66
Europe
Africa &
M.East
5 6 11
4 6
North
America
13
Latin
America
2006
2005
© OECD/IEA, 2007
170. More recently, international coking coal markets tightened during 2006-07 due to a
combination of demand and supply side factors. On the demand side, steel production
was strong, including in India where new capacity came on line during the year and the
utilisation of coke making capacity rose in response to higher Chinese export coke
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