Australia’s Coronado Global Resources said on Tuesday that China resuming metallurgical coal imports would likely push sea-borne coal prices higher in the short term, with strong realized prices in 2022 boosting its annual revenue.
The comments come after China, Australia’s largest coal importer and trade partner, earlier this month lifted an unofficial ban on coal imports and others commodities from Australia after a nearly three-year long geopolitical tussle.
The Brisbane, Queensland-based miner, which has not typically sold Australian coking coal to China, said last week it had received enquires for long-term supply as Beijing lifted its ban.
“Coronado expects Australian metallurgical (met) coal imports to China to return in 2023 and displace lower quality and higher cost Chinese domestic or US met coal production, particularly to the Chinese steelmakers in southern regions,” the company said.
Chief executive officer Gerry Spindler said he expects met coal prices to remain above historical averages throughout 2023 due to the ongoing trade constraints for Russian coal and elevated thermal coal demand and prices.
The coal miner posted annual revenue of $3.57 billion, 66% higher than last year with average realized prices more than doubling to $303.1 per tonne.
However, its coal sales volume for the year fell 7.7%, sending shares of Coronado Global 3.3% lower to A$2.07 at 0336 GMT.
(By Archishma Iyer; Editing by Rashmi Aich and Nivedita Bhattacharjee)