The only signs of some significant cuts in supply appear to be in three supplier countries — Indonesia, Russia, and the USA. Australia, South Africa, and Colombia continue to produce at increasing levels which will not help the supply/demand balance and therefore the price. At the latest rates, half of the decrease in global supply estimated in 2015 will have been made up for in 2016. The main swings are happening in the Pacific market, while the Atlantic supply continues to tighten by just a few million tonnes per year.
In corporate news, among the major mining companies, BHP Billiton reported that metallurgical coal production for the December 2015 half year decreased by 3% to 21mt. The company’s expectation for the 2016 financial year remained unchanged at 40mt. According to the company report released in January, Queensland Coal production declined in the December 2015 half year as record production at the Blackwater, Daunia, Caval Ridge and South Walker Creek mines was offset by a ‘convergence event’ at the Broadmeadow mine. Normal operations have resumed at that mine, but completion of longwall mining at the Crinum mine affected the overall output. The Crinum mine will be put into care and maintenance