THE world’s largest exporter of coking coal is feeling the slump in demand from steelmakers, noting a 20% decline in exports from its largest Australian port in December 2008.
BHP Billiton Mitsubishi Alliance (BMA) has reported shipments from the Hay Point coal terminal in Queensland fell to 2.58Mt in December 2008, compared to 3.23Mt the previous year.
BMA is Australia's largest coal producer and a leader in the international coal industry. The company operates a number of mines in Queensland’s Bowen Basin which produce high-quality hard coking and thermal coal.
Sydney-based mining and energy research group, Stock Resource, says BHP is simply “responding to market needs” in a changing environment.
According to BHP’s website, the company’s exports leading to 31 December 2008 declined 19% to 8.31Mt from 10.24Mt a year earlier. Rio Tinto and Xstrata have also curbed coking coal production since late 2008 as the global recession has curbed demand for steel.
Posco, Asia’s third largest steelmaker, says it is a “generally-shared view” among steelmakers that iron ore and coal prices should decline considerably throughout 2009.
Posco chief executive, Lee Ku Taek, says there will be a “wide gap between what steel producers and miners want” when it comes to discussions about coal contract prices.
Hay Port, owned and operated by BMA, is located about 40km south of Mackay in Queensland. The port, which has a capacity of 44Mt a year, exported 36.91Mt of coal in the year ending June 30 2009.
Add a comment