Australian coal producer Whitehaven Coal has announced that in the first quarter of the current year it produced 5.7 million mt of raw coal, remaining stable compared to the same quarter of the previous year, while its saleable coal production decreased by four percent year on year to 5.08 million mt. In the given quarter, Whitehaven Coal’s total coal sales amounted to 4.9 million mt, decreasing by 11 percent from the same period of 2016.
According to Whitehaven’s statement, in recent weeks the coal markets have been dominated by the aftermath of Cyclone Debbie in central Queensland and by China’s coal industry policy initiatives. The disruption caused by the cyclone is significant with the potential loss of about 15 million mt of metallurgical and thermal coal exports from the region. This loss of exports is likely to be positive for coal prices until normal production and shipments resume and any contract delivery shortfall is recovered, which could take some months. When the Queensland production losses are combined with relatively high Chinese domestic coal prices, the outlook for coal prices over the next three to six months remains positive.
The company also stated that, following the impact of Cyclone Debbie, enquiries for metallurgical coal have increased substantially and, given existing committed sales volumes, it expects an increase in metallurgical coal sales in the final quarter of this year.
Whitehaven confirms its full year production guidance of 21-22 million mt of saleable coal production.