Interesting! The Russia news will certainly increase substantially the demand for coal from Mongolia.
Especially coal from SouthGobi Resources coal mines. SGQ being only 45 km from China’s CEKE coal shipping port, where processing capacity has recently been doubled and customs formalities eased. SGQ.v will be far more competitive, reliable and profitable!!
elmarha
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In January-February 2024, the profits of Russian coal companies (adjusted for losses) declined 5.3 times from $1.2 billion to $0.2 billion, while losses increased twofold to $0.3 billion. Additionally, the number of loss-making entities increased from 39% to 46%.
This decline in profits is attributed to falling prices in the global market and a significant increase in costs, as well as several other factors like limited transportation capacity, export duties, rising railway tariffs, and Western sanctions.
Due to the current level of global prices and production costs, many Russian suppliers are finding it difficult to export coal profitably. This has led to a decrease in production and abandonment of new coal deposit development projects. If these trends continue, Russian coal exports in 2024 may decrease by 30-35 million tonnes.
However, if other Russian coal companies, their export terminals, and international transactions fall under sanctions, the loss of Russian exports may amount to about 50-60 million tonnes.
In the main coal mining region of Russia, Kuzbass, coal production decreased to 52.6 million tonnes in January-March 2024, which is 1.1 million tonnes or 2.1% lower than the previous year. Exports in Q1 2024 also fell to 45.5 million tonnes, which is 6.6 million tonnes or 12.8% lower than the previous year.
Russia has announced that it will temporarily remove the export tariff on thermal coal and anthracite from 1 May to 31 August 2024. The decision is aimed at providing support to the country's coal industry. It should be noted that coal export tariffs were reintroduced on 1 March 2024, with a range of 4-7%, depending on the ruble's exchange rate. However, if the rate remains below 80 rubles per U.S. dollar, the tariffs will be waived.
Export tariffs exacerbated challenges faced by the Russian coal industry, including declining global prices, rising railway tariffs, high transshipment rates at ports, and logistical obstacles. Russia’s seaborne coal exports declined 8.11% m-o-m to 10.86 mnt in March, with a 29.81% drop compared to the same month the previous year.
Russian coal shipments to Taman port’s OTECO terminal plummeted by 80% in the first quarter compared to the same period last year, as rail shipments were suspended from the end of January.
Coal production in Russia’s key producing area, Kuzbass, decreased by 2% y-o-y to 52.8 mnt in January-March 2024, according to the Ministry of Coal Industry of Kuzbass.
The introduction of export tariffs reduced flows into China, a leading buyer of Russian coal. In March, China’s coal imports from Russia fell by 21.7% y-o-y to 6.9 mnt, while Australian coal shipments surged by 131% to 5.1 mnt, according to Chinese customs data.
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Already looking at charts you recognize where there is suppression and manipulation as always with BB
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CEKE Port from Shivee Khuren Mongolia same period Q1 2024 to April. 1st, about 6 Million tons! Of that probably 20% plus from Oyut Tolgoi the SGQ mines 1878.HK ! That would be ESTIMATED at 1.2 Million tons!
Margin US$60 per ton! Estimated profit US$72 Million for Q1 in 2024! -
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https://www.sxcoal.com/en/news/detail/1779782857555943425. April 1st 2024
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https://www.sxcoal.com/en/news/detail/1779782857555943425 as of April 1st 2024
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Don’t forget, BB Is Canadian!
Can$ currency dropped today against US$ by almost 4% . Therefore US$ share price is down by 4%
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