Cyclone Koji hits Australian coal exports from northern Queensland in January

Coal exports from three Australian terminals under the management of North Queensland Bulk Ports Corporation (NQBP) totalled 8.97 million tonnes in January, lower by a large 26% on month and 4.8% on year, according to the latest data published by the company on February 11.

Market analysts blamed the throughput decline on Tropical Cyclone Koji, which brought heavy rains and storms to the northern Queensland coast last month.

At the Dalrymple Bay Coal Terminal (DBCT), part of the Port of Hay Point located about 40 kilometres south of Mackay, precipitation had reached 242 millimetres as of January 12, with part of the stockyard pooled with water, according to a notice dated that day from DBCT's operating company.

Meanwhile, adverse weather conditions also limited ship movements last month, with no departures from the Hay Point port recorded during January 7-12, according to Mysteel's maritime tracking.

As such, January coal shipments from the DBCT slumped 39% on month and 15% on year to 3.77 million tonnes, according to the NQBP data.

Another export hub located in the port, Hay Point Coal Terminal (HPCT), also reported a 14% fall in its coal shipments last month compared with December to total 2.68 million tonnes. The volume was still 25% higher than the year-ago level, though.

In the northernmost Abbot Point port, around 20 kilometres north of Bowen, coal shipments last month from the North Queensland Export Terminal (NQXT) dropped 12% on month and 11% on year to 2.52 million tonnes. The terminal also halted operations during January 8-13 because of the cyclone, as reported.

Connected by rail to dozens of coal mines in the Bowen Basin, Northeast Australia, these three terminals are the primary conduits for Queensland coal to overseas markets. More than 80% of the metallurgical coal loaded at these terminals is shipped to China, Japan, South Korea and India, as Mysteel Global has reported.

Supply disruptions have also boosted prices for Queensland coking coal. For example, the latest February 11 price for primary coking coal from the Daunia mine reached $198/wmt, compared with $183/wmt on January 2, CFR eastern Chinese ports excluding the 13% VAT, according to Mysteel's assessment.

Coal from the Daunia mine, an opencut mine wholly owned by Whitehaven Coal and located 170 km southwest of Mackay, is usually exported through the DBCT or HPCT.

Written by Adrian Zhou, zhouwenhaoa@mysteel.com

Edited by Russ McCulloch, russ.mcculloch@mysteel.com