FY22 Overview & Safety Program Update
METALLURGICAL COAL MARKET
III
SOUTH32
Recent price decline driven by weak
pig iron output (particularly in Europe)
combined with easing supply constraints
Metallurgical coal price and arbitrage
(US$/t)
Improvement in Indian spot demand and
Chinese steel sector recovery
will be key for near-term price support
Ability of supply to meet rising Asian
demand in the long term is constrained
by challenges with infrastructure,
financing and approvals
Australia and North American metallurgical coal exports(a)
(Mt)
700
600
500
400
300
200
100
European energy and raw material
prices dampened demand and
India imposed steel export duty
Australia ■North America
300
China and ex-China pig
iron output declined
China imposed ban
on Australian coal
imports
Aug-18
Aug-19
Aug-20
Prem Low Vol HCC FOB Australia
Source: Platts, World Steel Association, South32 Analysis
Notes:
250
200
150
100
Russia-
Ukraine
conflict
50
North American supply
remained inelastic despite
higher prices
Aug-21
Aug-22
(b)
2018
2019
2020
2021
2022
Prem Low Vol HCC CFR China
Source: IHS Markit (S&P Global) Commodities at Sea, South32 analysis
a.
b.
Metallurgical coal trade flow includes HCC, semi-soft coking coal and PCI.
YTD July 2022 annualised.
SLIDE 33View entire presentation