RBCT cans statistics to ward off competition

South African Richards Bay Coal Terminal (RBCT) has put in place an embargo on publishing its performance statistic because of the competitive environment it operates in, the terminal said.

Ample supply has put pressure on global coal prices with South African cargoes now competing with Australian production, as cheap Newcastle cargoes are making their way all the way into Europe – a market more traditionally associated with South African, US and Colombian supply markets.

One physical coal trader said RBCT stopped publishing operational results because they offered competitors an insight into where South African coal is going and who is buying it.

Miners around the world have already been forced to slash costs to remain competitive and entice buyers. For example, prices of spot FOB RB physical cargoes have fallen around 25% since the start of the year, with December-loading cargoes trading at $64.75/tonne this week. Similarly, FOB Newcastle physical spot values fell from $82.00/tonne in January to trade at $62.50/tonne earlier this week.

Lately, high dry bulk freights have further reduced demand for FOB cargoes, making it even harder for South African exporters to find buyers further afield. For example, one broker told ICIS the freight cost for a panamax vessel (carrying around 75,000 tonnes of coal) rose to around $10.22/tonne this week, from $8.97/tonne two weeks ago. With DES ARA spot prices hovering around $74.00/tonne level, it means shipping FOB cargoes from Richards Bay to Europe would be around $2.00/tonne more expensive than buyying DES cargoes outright. Stacy Irish