Russia's coal production and rail traffic in May double increase
Time:2021-06-16 11:33:20 Source:CCTDCOAL
Russia's coal production in May 2021 increased by 10.7% year on year to 34.38 million tons, according to the Central Transportation Bureau of Fuel and Power Complex (CDU). Since the beginning of the year, the figure has increased 9.3 percent to 178.44 million tons. In the January-May period, the supply of coal in the Russian domestic market was 12.98 million tons, up 20.4 percent year on year. Coal exports rose 12.5 per cent in May to 19.27 million tonnes. So far this year, Russia's domestic market supply is up 8.9% to 72.68 million tons, while export supply is up 12.3% to 86.31 million tons.
In terms of rail transport, 525.7 million tons of freight were transported through the Russian rail network in the first five months of this year. Capacity increased 3.5 per cent year on year, driven by infrastructure development projects and the commissioning of new transport facilities in the eastern mountains.
According to Russia's railway news agency, the bulk of cargo turnover in January-May -- 155 million tons -- was coal. Solid fuel transportation increased by 9.4 percent due to higher product prices and increased supply. Coke loads increased by 4.7 million tons (+4.1 percent). In contrast, the volume of oil and petroleum products continued to decline - over five months, this figure fell to 89.9 million tons (-2.2%). Shipments of iron and manganese ore also fell to 49.5 million tons. Due to the favorable international market conditions, shipments of ferrous metals and their wastes increased to 28.8 million tons (+0.5%) and 6.3 million tons (+24.7%), respectively.
Russia's coal miners are happy to see a growing share of rail transport. Sergei Chermetsov, managing director of Elgaugol Group, which is controlled by A-Property, said in early June that it was "quite realistic" that Russian coal could replace 60-70% of Australia's supply in the Chinese market within A few years. A-Property has A joint venture with China's GH Shipping for this purpose. The company plans to increase coal supply from 1-1.5 million tons in 2020 to 1.5-18 million tons in 2021, to 200-24 million tons in 2022, and to 30 million tons starting in 2023. However, supply growth is limited by the Trans-Siberian Railway and BAM transport capacity.
"A-Property also intends to transship coal to China at the ports of Vila and Vanino in the Khabarovsk border region." He added that while there was sufficient capacity at Port Vanino now, the company planned to "significantly increase production" over the next year or two. China could be the most promising partner as Russia needs to shift its coal exports eastward amid falling demand from EU countries. Hence their comments at Russian President Vladimir Putin's conference on the development of the coal industry. It calls for a third increase in eastbound coal shipments by 2024. Data show Beijing's imports of Russian fuel have increased by 30 percent since 2020. In the next 2-3 years, Russia is likely to continue to increase its market share in China.
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