Though India's government is initially targeting green hydrogen and carbon capture, utilization and storage to meet these goals, these technologies are still decades away, according to Pranay Shukla, director of research and analysis of dry bulk commodities and shipping at S&P Global Commodity Insights. Metallurgical coal is also a critical material in the generation of renewable energy infrastructure such as wind turbines, solar, hydro, nuclear power infrastructure and electric vehicles, according to Ziems. "Coronado is well positioned to support Indian steel demand growth well into the future." Australian and US metallurgical coals in general tend to be of a higher quality than the coal produced by competitor locations," Ziems said in an email interview. "Different coals emit different amounts of carbon dioxide in relation to the energy they produce when utilized. Metallurgical coal plots next cautious steps in pricing evolutionĪs the world's second-largest steelmaker after China, India's efforts to reach net zero will rely heavily on decarbonizing that sector, according to The Climate Group, which launched the SteelZero demand initiative by steel users in India in July 2022. Metallurgical coal's gradual change of guard in spot market influenceĪustralia's comeback as supplier to China uncertain as both find new trade partnersĪustralia to reap benefits in met coal exports as India aims at net zero targetsĬoal trading platforms' role in meeting transparency needs
22 analyst call that global seaborne coking coal demand is expected to rise 43% by 2050, driven by India's planned blast furnace steel production.īHP sees India's steelmaking sector underpinning "decades of strong margins" for its coking coal assets in Australia, noting in its results for the second half of 2022 that India in the leadup to its 2024 general election could buck the trend of ex-China steelmakers being under pressure "as the general industrial climate softens" after global steelmakers' margins were squeezed amid lower sale prices and high input costs over H2 2022. India became a bigger importer of Australian coking coal than China in 2018, according to S&P Global Commodity Insights data, and Australian producers see that trend strengthening.Ĭoronado Global Resources Inc. "Chinese coal imports from Mongolia have lifted significantly in the last 12 months, even with COVID-19 impacts limiting cross-border transport - and they're building out more railways between Mongolia and China to boost those numbers," he added. "There will still be a market for low-sulfur, high-quality premium coking coal from Australia in China given its blast furnaces are designed around that, but it's tough for us to see how exports could sustainably go back to what they were before the ban," the Commonwealth Bank of Australia's mining and energy commodities research director Vivek Dhar said in an interview. Most of the volume will go to India, despite China having started buying Australian coal again in February after unofficially banning such imports in October 2020.Ĭhina's coking coal imports have peaked, according to the Australian government's latest Resources and Energy Quarterly issued April 3.Īustralian producers would prefer a long-term offtake contract with a steelmaker in India over one in China, which stopped trading with them during the unofficial ban period, AME Research Managing Director Lloyd Hain said in an interview.
Receive daily email alerts, subscriber notes & personalize your experience.Īustralia's resource and energy export revenue is forecast to hit a record A$464 billion ($310 billion) in fiscal 2022-23 (July-June), A$5 billion higher than the government forecast in December, due to an anticipated lift in metallurgical coal and iron ore earnings and a weaker-than-expected exchange rate against the US dollar.Īfter both metallurgical and thermal coal prices rode the surge in energy prices in 2022 stemming from Russia's invasion of Ukraine, the Australian government sees its metallurgical coal exports rising to 172 million mt by FY 2027-28 from 163 million mt in FY 2021-22.
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