Coal export prices from Richards Bay fall to $56.90

The price of coal shipped from South Africa's Richards Bay, site of the largest export terminal for the fuel, fell to a four-week low after Chinese producers stepped in to supply Japan after Australian shipments were halted.

The price dropped $2.30, or 3.9 percent, to $56.90 a metric ton as of July 6, according to weekly data from McCloskey Group Ltd. Total shipments from the port, the main source of coal for European power plants, increased 18 percent last month to 5.45 million metric tons, even after a temporary closure because of high waves that could be dangerous for ships.

After a storm in Newcastle, Australia, which disrupted shipments from June 8 to June 25, "the idea was the Japanese utilities would buy South African coal as a replacement stock for Australian coal,'' John Howland, an analyst at McCloskey Group, said in an interview. "Then the Chinese came into play with a competitive price'' and could "get coal more quickly into Japan.''

Delays at Richards Bay earlier this year disrupted global supplies amid rising Asian demand. The price of Richards Bay coal has risen 11 percent since Dec. 15, the last recorded price for 2006.

The terminal is owned by South Africa's biggest coal exporters, including Anglo American Plc, BHP Billiton Ltd. and Xstrata Plc. It has the capacity to export 72 million tons of coal a year. At the average rate recorded so far this year, it will ship 64.18 million tons in 2007.

Newcastle Prices

The port at Newcastle has two export terminals, making it the largest coal-shipment harbor. China became a net importer of coal for the first time in January.

Prices from Newcastle dropped 4.7 percent to $67.56 a ton in the week ended July 6, from $70.88 the previous week, according to the globalCOAL NEWC Index. That was the first decline in nine weeks, following a return to normal operations at the port on June 25.

Coal for delivery to Amsterdam, Rotterdam or Antwerp next year was unchanged at $78.45 a ton at 4:31 p.m. in London, according to ICAP Plc prices on Bloomberg.