Insight
| |
6 Pages

Europe at US$60/t: when do US thermal coals become competitive?


Europe at US$60/t: when do US thermal coals become competitive?

Report summary

With European thermal coal prices hovering at US$60/t, market participants are asking: when does the US come back into the export market? Since January, the delivered cost curve has moved upwards by US$4-5/t, and available capacity has contracted. This allows for the main US suppliers to be more-or-less "in the money", in theory. There should be an opportunity for an additional 3-5 Mt if prices are sustained at current levels. But the picture is muddied by available capacity, US domestic demand, shipments from global competitors, and size of the market in the Atlantic.

What's included?

This report includes 1 file(s)

  • Europe at US$60/t: when do US thermal coals become competitive? PDF - 286.53 KB 6 Pages, 0 Tables, 4 Figures

Description

This Coal Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.

Participants, suppliers and advisors can use it to look at the trends, risks and issues within the coal industry and gain an alternative point of view when making decisions.

Wood Mackenzie is the only coal industry service provider that offers a market outlook integrated with other sector analyses, including macroeconomics, coal supply, steel markets and gas and power markets.

Our coal analysts are based in the markets they analyse. They work with objective, proprietary data to help you maximise your current and future decision making. From market dynamics to trade patterns, we give you confidence in your strategic planning.

  • Executive summary
  • The delivered cost curve moves upwards
  • Supply capacity tightness: what does a realistic curve look like?
  • US exports and ability to ship

In this report there are 4 tables or charts, including:

  • Executive summary
  • The delivered cost curve moves upwards
    • European delivered cost curve evolution: January to August 2016
  • Supply capacity tightness: what does a realistic curve look like?
    • South African thermal exports: destinations and volumes (Mt)
    • Delivered cost curve: with capacity restrictions
  • US exports and ability to ship
    • US stockpiles – near record levels, and likely to be burned down quickly
Requester's name : .............
Department : .............
Authoriser's Name : .............
Authoriser's signature : .............
Date : .............
Cost Centre : .............

Questions about this report?

Frequently Asked Questions

Mailenquiries@woodmac.com
  • Europe: +44 131 243 4699
  • Americas: +1 713 470 1900
  • Asia Pacific: +61 2 8224 8898
contact us

Why Wood Mackenzie?

Wood Mackenzie, a Verisk Analytics business, has been a trusted source of commercial intelligence for the world's natural resources sector for more than 40 years, empowering clients to make better strategic decisions with objective analysis and advice.

We work across every sector of oil, gas, power, renewables, chemicals, metals and mining, covering more than 150 countries. Our proprietary data and models are at the core of everything we do, ensuring our independent asset and company valuations are thoroughly robust and that we offer an accurate forward-looking view of economic indicators such as market supply, demand and price trends.

Our 500+ analysts are based in the regions they cover, cultivating an unrivalled depth of understanding to help clients accurately identify new opportunities, define their strategy and improve business performance.

At every stage, our teams readily collaborate and share their insight to provide an integrated perspective across entire industries. It is this unique and rigorous analytical approach that ensures we are recognised as the industry standard by the world’s most innovative organisations.