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5 Pages

South Africa: thermal coal costs and margins continue to decline


South Africa: thermal coal costs and margins continue to decline

Report summary

South Africa's thermal coal has remained competitive within the global seaborne export market due to falling costs in US dollar terms, largely driven by devaluation of the local currency. The rand has fallen 64% over the past five years. In 2015 alone the average total cash cost for export thermal coal fell 10% on average to US$46/tonne, compared with 2014. Margin compression has continued despite lower costs, due to falling seaborne export thermal prices.

What's included?

This report includes 2 file(s)

  • South Africa: thermal coal costs and margins continue to decline PDF - 296.52 KB 5 Pages, 1 Tables, 5 Figures
  • South Africa thermal coal costs and margins continue to decline.xls XLS - 203.50 KB

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.

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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
  • Weak exchange rate key to lower cost
  • Unit rates decline in 2015
  • Margin down but set to rise
    • Economic assumptions
  • Conclusion

In this report there are 6 tables or charts, including:

  • Executive summary
  • Weak exchange rate key to lower cost
    • South African export thermal total cash cost (US$/t)
    • South African export thermal total cash cost (R/t)
  • Unit rates decline in 2015
    • South Africa key rand cost escalators (%)
  • Margin down but set to rise
    • South African export thermal coal margins (US$/t)
    • South African export thermal coal margins (R/t)
    • South Africa: thermal coal costs and margins continue to decline: Table 1
  • Conclusion
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