Cloud Peak exports no coal in 2Q16

Powder River Basin coal company, Cloud Peak Energy, did not export any coal in 2Q16, the company’s most recent results statement has revealed, and does not expect any international shipments for the remainder of 2016.

Since the beginning of last year, exports have fallen from 1.4 million short t (1Q15) to just 0.2 million short t in the first quarter of this year, before dropping to nothing in the three months to June.

In total, the company exported 2.4 million short t last year.

The company blamed “continued weak international prices for seaborne thermal coal” on the fall in coal exports – but remains positive on the potential for coal exports to Asia in the medium term.

“We have begun to see stability in international supply and demand and a significant increase in prices for both near-term and out-year seaborne thermal coal,” the company said in its 2Q16 results statement. Chinese thermal coal imports have been higher than expected, driving the prices rise, but demand also continues to grow in Vietnam, South Korea, Japan and Taiwan, Cloud Peak noted.

On the supply side, Indonesian supply – with which Cloud Peak exports would compete – has fallen significantly, while Australian supply has been stabilising, the company said. There is also a lack of investment in future supply projects.

“Given the large number of Asian utility plants currently being built to take imported coal, the company believes the current oversupply will be overcome by growing demand over time. While prices are not yet at levels that would make exports from the Spring Creek Mine economic, the Company continues to receive inquiries from Asian customers looking for long-term supply.”

Edited by Jonathan Rowland.

Read the article online at: https://www.worldcoal.com/handling/01082016/cloud-peak-exports-no-coal-in-2q16-2016-2118/