| 1 | | Matt Warder GM Coal Traders! Prices look gross today. Australian premium low-volatile (PLV) coking coal futures plunged in trading today, with the April contract (U7J25) falling .50 (-4.14%) to 3.50/t. Nearby contracts saw similar declines, with May (U7K25) down .00 to 4.00/t and June (U7M25) dropping .50 to 4.50/t. Further out, July (U7N25) slid .50 to 9.50/t, while deferred contracts saw losses of -10/t. Physical spot assessments for PLV have also fallen just below 0/t. Meanwhile, coal shipments from Queensland’s three northern ports—Dalrymple Bay, Abbot Point, and Hay Point—plunged to a decade-low 6.4mn t in February, down from 9.4mn t in January and 11.1mn t a year earlier. Severe weather, including flooding and debris, forced port closures, cutting operational capacity to 40%. Dalrymple Bay handled only 2.97mn t, its lowest since Cyclone Debbie in 2017. Abbot Point exports collapsed 60% YoY to 1.33mn t, the lowest since 2013. Total exports fell 42% YoY and 24% YTD. Given these disruptions coincide with falling metallurgical coal prices, our expectations for any kind of a meaningful spring rebound are tempered at best. -MW |
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