Russia aims to increase its coking coal exports, given the decrease in demand for raw materials in its domestic market, Russia's Metal Supply and Sales magazine has reported.
In 2013, the consumption of coking coal in the country grew by only 1 million mt compared to the previous year, rising to 38 million mt. According to the Central Supervisory Control of the Fuel and Energy Sector, coking coal exports increased by 60 percent year on year reaching 20.535 million mt in 2013. According to Russia's Ministry of Energy, in 2013 average FOB export prices decreased by 14.7 percent compared to 2012, falling to $99/mt of coking coal. Russia's supply of coal to neighboring countries in 2013 increased by 9.5 percent year on year to 5.648 million mt. At the same time, coal exports to non-CIS countries in the given year increased by 94.3 percent year on year to 14.887 million mt, while Russia's coal supply to the Asia-Pacific region almost doubled.
The Asian markets are very attractive for Russian exporters, whose products can be competitive there given the shorter transport period compared to Australian coal. However, for a further significant increase in supply it is necessary to improve logistics infrastructure, which requires time and a lot of money.