OREANDA-NEWS In July, the months-long decline in the profitability of Russian thermal coal exports stopped, supplies began to rise in price in all directions, and netbacks (sales price minus logistical costs) companies will increase. Vedomosti writes about this with reference to the review of the analytical company Neft Research.

The main factor influencing this process was the recovering world prices. Thus, the cost of FOB-based coal (with ship loading) in Newcastle, Australia, which is a global benchmark, has increased by nine percent since July.

Russian coal has also gained $8-10 per ton in price over the past two weeks. Maxim Khudalov, chief strategist at Vector X Investment Company, added that the control by the Armed Forces of Ukraine (AFU) of a part of the Kursk region also played a role, as it led to concerns about interruptions in Russian gas supplies to Europe.

However, Vladimir Korotin, CEO of Russian Coal, said that fluctuations of one or two dollars per ton cannot be considered a recovery in world prices. Other coal miners did not respond to the publication's requests for comment.

The report by Neft Research indicates that the volume of Russian coal exports to Asia continues to fall due to weak demand, that is, rising prices have less impact on the income of suppliers. Exports of coking coal, on the contrary, are growing, but netback is falling due to lower prices. Since the beginning of the year, the quotations of this type of coal have decreased by 75 percent.

Earlier, Rosstat reported that in the first four months of this year, more than half — 52.4 percent — of Russian coal companies began to generate losses.