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Russian coal production fell in February

In February, coal production in Russia decreased by 1.8 percent compared to January and by 0.7 percent compared to August of the previous year, reaching the lowest level of 34.6 million tonnes.

Russian coal production fell in February

In January, coal production increased by 1.7 per cent year-on-year. However, coal exports fell eight per cent to 14.6 million tonnes in the same month, with all major consumers, including China, India (-55 %) and Turkey (-47 %), reporting reduced purchases of Russian coal.

Production volumes in January were supported by increased demand in the domestic market.
According to the General Administration of Customs of China, Russian coal purchases fell 22.4% year-on-year.

The refusal of coal producers to deliver coal cargoes due to a dispute with the management of the OTEKO terminal in the Black Sea port of Taman may become a problem for supply growth. Coal producers point to high tariffs that make deliveries through this port unprofitable at current prices, while the terminal company claims that small volumes of shipments do not allow it to provide services on more favourable terms.

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