July coal exports from Virginia's Hampton Roads region totaled more than 2.9 million st, down 20.1% from the prior month and down 20.8% from the year-ago month, the Virginia Maritime Association said Monday.
The July total is the lowest monthly figure since July 2011.
Meanwhile, exports in the first seven months of 2014 totaled 26.6 million st, down 12.9% compared with the same period last year, it added.
While neither the association nor the three Hampton Roads terminals comment on monthly export data, market sources say the decline is largely due to weaker overseas prices for both metallurgical and thermal coal.
Platts assessed US low volatile matter hard coking coal FOB East Coast at $114.25/mt on Friday, down more than 15% from the year-ago price.
In thermal coal markets, Platts on Friday assessed coal delivered to the ports of Amsterdam, Rotterdam and Antwerp (CIF ARA) at $78/mt. While that price is up 5% from the year-ago mark, the assessment has averaged roughly $78.50/mt over the past year, which equals $71.21/st.
At that amount per st, most US coal producers find their coal out of the money, given that Central Appalachian coal has production costs of roughly $60/st.
Lambert's Point, which is owned and operated by Norfolk, Virginia-based Norfolk Southern, exported 1,355,551 st in July, down 13.3% from June and down 27.8% from July 2013. Year-to-date exports from the terminal reached 10,798,972 st through July 31, down 15.3% compared with last year.
Pier IX, owned and operated by Houston-based Kinder Morgan, exported 719,616 st in July, down 38.7% month on month and down 21.9% compared with the year-ago month. Its year-to-date exports are down 16.1% year on year at 6,979,180 st, according to the data.
Dominion Terminal Associates, which is owned by Arch Coal, Peabody Energy and Alpha Natural Resources, exported 873,770 st in July, down 8.3% from the prior month and down 5.4% from the year-ago month. Through the first seven months of 2014 its exports totaled 8,786,152 st, down 6.7% from 2013.
Coastwise coal shipments to domestic US locations from the terminals in July totaled 45,186 st, down 46.8% from June and down 52.6% year on year. So far in 2014, coastwise coal shipments total 776,669 st, down 18.3% year on year.
