THE PORT of Newcastle on the NSW central coast in Australia has announced it has cut shipping allocations for all producers for the rest of the second quarter by one million tonnes.
Small coal producers will have their port allocations reduced over the rest of May and June, while large producers, such as Xstrata, Coal & Allied, would have to cut their exports in June.
The reduction in exports is expected to have a limited impact on Asian coal prices, as some producers were already struggling to meet their initial shipping allocations amid tepid regional demand, the traders said.
The port notified producers of the cut late last week.
Ship queues at the port have risen steadily over the past weeks amid maintenance and weather-related disruptions, and could rise above 30 vessels by the end of the month.
The port of Newcastle is the world's largest coal-export terminal.
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