Insight
High-ash thermal coal: demand pull or supply push?
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
The production of high ash thermal coal has increased in Australia largely due to Chinese coastal demand and producers looking to maximise the value of their product portfolios. However, in the current market producers may be incentivised to switch from high-ash too more low-ash production as the discount outweighs the cost savings for producing the high-ash product. Processing capacity constraints may restrict a mine's ability to switch between a high-ash and low-ash product. The decision is whether to invest in the development of mine infrastructure and processing plants to produce more washed low-ash coal, or proceed with business as-usual.
Table of contents
- Executive summary
- The rise of high-ash thermal coal
- Why produce high-ash coal?
- Conclusion
- Annex 1: Australian 2016 seaborne thermal coal cost and margin curves
Tables and charts
This report includes the following images and tables:
-
High-ash thermal coal production by country, MtHigh-ash coal marketable reserves as of 2016, BtSpecifications of Australian benchmark high-ash coal
-
Production, change in NPV (2011-15) due to inclusion of high-ash product and breakeven high-ash coal discount by mineActual and breakeven high-ash coal discounts by mineFactors influencing high-ash thermal coal production in AustraliaMines position on cost curve with high-ash production*High-ash thermal coal: demand pull or supply push?: Image 7Mines position on margin curve with high-ash production*High-ash thermal coal: demand pull or supply push?: Image 9
What's included
This report contains:
Other reports you may be interested in
Country Report
Northern Appalachia coal supply summary
Northern Appalachian thermal and metallurgical coal production will remain steady in 2024 but face cost and domestic demand challenges.
$6,750
Country Report
Central Appalachia coal supply summary
This report provides an overview of the Central Appalachia coal industry for 2026 and beyond.
$6,750
Country Report
Australia coal supply summary
An overview of key issues in the Australian coal industry.
$6,750
