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5 Pages

Russian coal exports soar as costs decline – but will it last?


Russian coal exports soar as costs decline – but will it last?

Report summary

The depreciating Rouble is the major factor behind strong Russian coal export growth in 2014.  We estimate that at current exchange rates, the average total FOB cash costs are 35% lower in US$/t than in 2013. However, the potential Rouble strengthening in late 2015 and a 10% rise in rail tariff are likely to negatively affect the Russian coal export growth in 2015-2016.

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  • Russian coal exports soar as costs decline – but will it last? PDF - 300.28 KB 5 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
  • Russia’s exports growing strongly while domestic demand is falling
  • Rouble depreciation and rail tariff freeze boost cost competitiveness
  • Coal exports are also affected by other market, social and political factors
  • 2015 may see a change in the cost trend
  • Conclusions

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

  • Executive summary
  • Russia’s exports growing strongly while domestic demand is falling
  • Rouble depreciation and rail tariff freeze boost cost competitiveness
    • Total (FOB) cash costs – Russian metallurgical export coal (US$/tonne)
    • Total (FOB) cash costs – Russian thermal export coal (US$/tonne, adjusted to 6322 kcal/kg GAR)
    • Operating margins – Russian export metallurgical coal (US$/tonne)
    • Operating margins – Russian export thermal coal (US$/tonne)
  • Coal exports are also affected by other market, social and political factors
  • 2015 may see a change in the cost trend
  • Conclusions
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