Richards Bay coal prices hit $90.30, marking significant drop

The price of coal at the Richards Bay Coal Terminal has fallen to $90.30 per metric ton, a decline of $17.55 or 16.27%, marking a near three-year low since it was at $87.20 in March 2021.

Over the past five years, the contract's trading range has fluctuated between a low of $106.90 and a high of $110.35.

In 2024, the terminal exported 52.1 million metric tons, up from 47.2 million metric tons the previous year, and the highest since 2021, which saw exports of 58.7 million metric tons, according to the latest presentation by the terminal.

Additionally, Richards Bay Coal Terminal (RBCT) projects coal volumes to reach 55 million metric tons in 2025 at a budgeted rate, with a possibility of hitting 60 million metric tons at a contracted rate.

FOB Richards Bay 5,500 kcal/kg NAR coal prices averaged $88.40 per metric ton in 2024, compared to $99.65 per metric ton in the previous year, according to S&P.

The decline in prices is attributed to price-sensitive buyers in Asia securing favorable deals amid increased availability of coal from other origins at competitive prices.

The terminal's infrastructure can receive 91 million metric tons, or 32 trains per day, of coal through rail annually and export 84 vessels per month, as shown in the company's presentation.

In February, Pakistan's imported coal-based power generation increased by 20.6%, reaching 695 GWh. Additionally, the country's cement plants utilize imported coal. The downward trend in coal prices is expected to benefit both these sectors.