In Kuzbass the first results of a year of crisis for the coal industry were brought down. Due to the low export price, shipping fuel to Russia’s western ports for supplies abroad has become unprofitable. The east direction is busy. As a result, production and exports of the industry, which employs about a hundred thousand Kuzbass residents, have decreased.
“In the face of new challenges that have arisen in the coal industry, production volumes at Kuzbass have begun to decline, although production capacities and coal reserves allow us to extract more,” he said. — informs the Kuzbass Ministry of Coal Industry.
According to him, in ten months coal production in the region decreased by 14.6 million tons or 8.2% compared to last year, to 163.8 million tons. At the same time, Kuzbass coal exports fell by 11.9% to 83.9 million tons.
“Since the beginning of the year, 44.7 million tons of coal have been shipped eastward, which corresponds to the level of the agreement with Russian Railways for 2024; 39.2 million tons have been sent westward, accounting for 24.3%; lower than in 2023”, – explained the Ministry of Coal Industry of the Kemerovo region.
Chief strategist of the investment company “Vector X” Maxim Judalov notes that current export prices are $5 to $8 per ton below the required minimum, and after the winter purchasing period, which is currently underway, the cost may drop further.
“Until thermal coal prices rise above $92-95 per ton in southern ports and approximately $95-98 in northwestern ports, there is little prospect for growth in westbound coal shipments,” – says the expert. In his opinion, the current situation of coal shipments indicates how the rigidity of some economic entities causes the paralysis of an entire sector, depriving the State of tax revenue.
Previously, deputy head of the Energy Committee of the State Duma Dmitry Islamov He stated that about 70% of the export price of coal comes from transportation and logistics costs, so it is necessary to provide discounts and reduction factors for rail transportation of coal.
“I believe that there are still no objective reasons for the increase in coal prices. Unless gas prices in Europe remain at a high level (over $600) for more than three months. In this case, Europeans will begin to switch to coal, which could drive up prices in the region.” – added the chief strategist of Vector
