06.05.2024, 10:33
Russian coal has become more difficult to transport within the country
Source: OREANDA-NEWS
OREANDA-NEWS The fall in global coal prices does not lead to a reduction in the cost of logistics within the country, which makes it increasingly difficult for coal companies to transport by rail. Kommersant writes about this with reference to market participants and analysts.
Recently, logistics has accounted for more than 50 percent of the export price, while in November it did not exceed 40 percent. The Center for Price Indices (CCI) in an April report suggested that if the trend in the international market does not change, exporters will have to look for ways to optimize.
An industry source confirms that, on average, in the second quarter, the share of costs for the supply of thermal coal by rail exceeds 40 percent and continues to grow. In his opinion, this situation will lead to a revision of the production programs of coal companies and a decrease in production volumes.
International analytical agencies believe that prices for coking coal will continue to decline in the coming years. At the same time, an export duty of 4-7 percent remains in effect for this type of coal, depending on the ruble exchange rate, although it was suspended again for thermal coal from May 1 to August 31.
Sergey Grishunin from the National Rating Agency (NRA) does not see good options for reducing logistics costs. He believes that companies will be forced to reduce supplies, and then there will be a reduction in tariffs, which operators will have to do. This will further weaken export performance, although, according to Kpler, coal exports fell by 21 percent year-on-year in the first quarter.
Earlier it was reported that in January-February, 45.9 percent of Russian coal companies turned out to be unprofitable. At the same time, the balance of profits and losses decreased fivefold over the year compared to the first two months of 2023, and in the spring the situation further worsened.
Recently, logistics has accounted for more than 50 percent of the export price, while in November it did not exceed 40 percent. The Center for Price Indices (CCI) in an April report suggested that if the trend in the international market does not change, exporters will have to look for ways to optimize.
An industry source confirms that, on average, in the second quarter, the share of costs for the supply of thermal coal by rail exceeds 40 percent and continues to grow. In his opinion, this situation will lead to a revision of the production programs of coal companies and a decrease in production volumes.
International analytical agencies believe that prices for coking coal will continue to decline in the coming years. At the same time, an export duty of 4-7 percent remains in effect for this type of coal, depending on the ruble exchange rate, although it was suspended again for thermal coal from May 1 to August 31.
Sergey Grishunin from the National Rating Agency (NRA) does not see good options for reducing logistics costs. He believes that companies will be forced to reduce supplies, and then there will be a reduction in tariffs, which operators will have to do. This will further weaken export performance, although, according to Kpler, coal exports fell by 21 percent year-on-year in the first quarter.
Earlier it was reported that in January-February, 45.9 percent of Russian coal companies turned out to be unprofitable. At the same time, the balance of profits and losses decreased fivefold over the year compared to the first two months of 2023, and in the spring the situation further worsened.
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