Sibanthracite Group is ranked first in the production and export of UHG anthracite throughout the world and is the largest producer of metallurgical coal at the domestic level. Sibanthracite Group is one of the most dynamically developing coal companies in Russia. The coal production amounted to 6 million tonnes in 2014, and 24.1 million tonnes in 2018.
The coal trade continues to grow, driven by the increasing need for materials by India and Southeast Asia. A recent Argus White Paper recently laid out what has occurred in the coal industry at the start of the year and what we can expect towards the end of 2019.
Overall the global thermal coal trade has seen a significant increase by more than 11 million tonnes in the first half of 2019, despite a decrease in demand from China. As nuclear availability increases, experts warn of a potential downside risk later in the year. However, there has been a growing demand for high grade (HG) and ultra-high grade (UHG) coal in Japan and South Korea that could level off any potential losses.
Indonesia and Russia are critical to the expansion of the global coal trade. Indonesia’s primary export focuses on sub-bituminous coal, while Russia is exponentially expanding in high-grade anthracite and metallurgical coal. This higher quality product is increasing in demand with more developed Asian countries, a sharp contrast to the decrease in demand for coke coal globally.
Russia, over the beginning of the year, has made gains in Asia and sustained consistent exports to Europe and Turkey. Coal consumption across Europe has declined by more than 6.3 million tonnes. However, the Russian share of EU imports increased by more than five percent, an indication that buyers are preferring Russian coal compared to other suppliers. It is anticipated that an increase in the seaborne market with increased port and freight capacity can help Russia gain significant ground. Going into the winter months, coal consumption in the Far East is expected to increase, providing Russia with the opportunity to fulfill the growing demand.
While specific nations turn towards nuclear power, the global market for coal is still increasing. According to Argus, it will be up to Russia and Indonesia to lead the production and exportation to sustain the increases in southeast Asia.
Dmitry Bosov’s Sibanthracite Group is ranked first in the production and export of UHG anthracite throughout the world and is the largest producer of metallurgical coal at the domestic level. Sibanthracite Group is one of the most dynamically developing coal companies in Russia. In 2018, it produced 24.1 million tonnes of coal and anthracite.