Baltimore Port Shutdown Triggers Coal Price Hike: Energy Information Administration Warns Of Export Disruptions
Coal prices rise after Baltimore port closure due to bridge collapse; Consol Energy affected. Port is key coal export hub, metal imports also disrupted. Coal prices have risen since the Port of Baltimore was closed due to the collapse of the Francis Scott Key Bridge, which cut off many of the port's facilities. The price of a ton of U.S. coal rose by 0.6% to $113.25, while the Range Global Coal ETF (NYSE:COAL) rose 0.7% and is up 2.7%. The port is the second-largest coal exporting hub in the country, accounting for 28% of total coal exports in 2023. The Energy Information Administration (EIA) warned that the disruption may affect the volume of exports this year. Other nearby ports have additional capacity to export coal, but this will affect how easily companies can switch to exporting from another port.
Publicado : hace 4 semanas por Neil Dennis en
Coal prices have risen in the past couple of days since the Port of Baltimore was closed following the collapse of the Francis Scott Key Bridge, cutting off many of the port’s facilities.
The price of a ton of U.S. coal rose by 0.6% on Thursday to $113.25. Meanwhile, the Range Global Coal ETF (NYSE:COAL), which tracks several different miners of differing grades of coal, rose 0.7% to $22.81, and is up 2.7% over the last two trading sessions.
Consol Energy Inc (NYSE:CEIX) is one of the biggest exporters through the port’s coal terminal. The Pennsylvania-based company said following the incident that it was working with port authorities to restore access to the terminal.
It added, however: “At this moment, we do not have a definitive timeline of when vessel access or normal operations will resume. We are looking at all available options to us to minimize or address direct and indirect impacts to the Company and its operations.”
Consol’s shares fell nearly 7% on Tuesday, but recovered some ground in subsequent sessions.
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The U.S. Energy Information Administration (EIA) said the port is the second-largest coal exporting hub in the country, accounting for 28% of total coal exports in 2023. Much of this is delivered to Asia.
The EIA warned: “The interruption in operations in Baltimore may affect the volume of exports this year.”
Baltimore’s coal terminal is attractively situated to receive coal from the northern Appalachia fields in western Pennsylvania and northern West Virginia, which produce both premium quality metallurgical for steel production and smelting, and steam coal for use in power stations.
Shipments of the predominant steam coal from Baltimore averaged 12 million tons between 2019-22, but surged to 19 million in 2023 after rising demand from Asia, particularly India.
The EIA concluded: “Other nearby ports, most notably Hampton Roads, have additional capacity to export coal, although factors including coal quality, pricing, and scheduling will affect how easily companies can switch to exporting from another port.”
Baltimore is not only a hub for exporting commodities, it is also a key destination for U.S. imports, with cobalt among the metals — with over half of total shipments arriving in Baltimore.
In addition, Baltimore was the third-largest destination for imports of unwrought primary aluminum last year.
On commodity exchanges, the price of aluminum futures rose 2% on Thursday as the market faced supply chain glitches. The iShares U.S. Basic Materials ETF (NYSE:IYM), which tracks producers of metals and other raw materials, has gained 2.1% over the past couple of session.
Meanwhile, shipments of tin, copper and zinc are also expected to face delays as other ports are found to receive the extra capacity.
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