The record 75.4 million tonnes of coal exported out of the Richards Bay Coal Terminal (RBCT) in 2015 – announced earlier this year – do not tell the whole story, according a market analyst. Instead, the high volumes seem to indicate that smaller miners have lost even more market share.
Andrew Wells, managing editor at IHS Energy, said in a report that RBCT remained the cheapest and therefore most popular export route, making it harder for junior miners to compete in an increasingly low-priced environment.
“With South African coal prices languishing near seven-year lows, competitor export terminals who hope to expand capacity and attract more customers will struggle to regain market share in 2016. The market is weak and oversupplied,” said Wells.
