Australia’s Newcastle Coal Exports Reach New Heights in 2023
Sydney, 8 January – The Port Waratah Coal Services (PWCS) terminals in Newcastle, Australia, have reported a significant increase in coal exports in 2023 compared to the previous year. Port data reveals that the PWCS terminals shipped 9.93 million tonnes (t) of coal in December, surpassing the November and December 2022 figures of 8.8 million t and 8.74 million t, respectively. Overall, the PWCS terminals shipped 95.51 million t of coal in 2023, indicating growth from the 91.89 million t exported in 2022.
This surge in coal exports comes after a challenging period for the industry. In 2022, severe flooding and China’s informal ban on Australian coal imports caused a decline in shipments. Additionally, the peak in PWCS coal exports occurred in 2021 due to changes in fuel trade flows resulting from the war in Ukraine. However, with flood recovery work curbing early 2023 output, December of the same year showcased the strongest monthly throughput since January 2022.
The sustained demand for PWCS coal from China contributed to the overall positive performance in December, although exports to China were slightly weaker compared to the previous month and October, which saw record-high exports, according to initial shipping data collated by Argus.
The Newcastle Coal Infrastructure Group (NCIG) has yet to release data for its terminal at Newcastle. However, early shipping data suggests that NCIG also experienced a strong end to the year, contributing to the broader port’s performance. While specific figures for December have not yet been disclosed by the Port Authority of New South Wales (NSW), it is anticipated that overall coal shipments in 2023 exceeded the previous year’s decade low of 136 million t. Nevertheless, they fell short of the record high of 156 million t shipped in 2021.
Notably, PWCS reduced its stocks to 1.05 million t at the end of December, the lowest recorded figure since April 2021. The absence of track maintenance in December, a trend likely to continue into January, coupled with a long shipping queue, sets the stage for potential increased exports. January traditionally serves as a strong month for the port.
Australian Rail Track is yet to release its maintenance plan for 2024, with the first usually scheduled for early February. The information will shed light on potential logistical implications for coal exports in the coming year.
The strong performance of Newcastle’s coal exports in 2023 signifies a positive shift for the Australian coal industry after facing numerous challenges and disruptions in recent years. With the sustained demand from China and the potential for increased shipments in the upcoming months, the industry may experience further growth and recovery.
