The profitability of exports through the ports of the south and northwest has increased
The profitability of Russian thermal coal exports through the previously completely unprofitable northwestern and southern directions increased slightly in the third quarter, according to data from the Center for Price Indices (CCI). Due to rising coal prices and a reduction in the cost of marine logistics, netback on these routes equaled netback for delivery through the ports of the Far East, reaching $23-25 per ton. But this is still not enough to cover the cost of production, which is estimated at about $32 per ton. Netback (net revenue of the exporter minus logistics) for the supply of Russian thermal coal through the ports of the south and north-west entered the green zone in the third quarter, equaling netback for delivery through the eastern ports. This is stated in the CCI review. The head of the CCI, Natalia Porokhova, says that by the end of the third quarter, the netback in Kuzbass for 6,000 kcal thermal coal reached $23-25 per ton when delivered through both eastern and western ports. "Back at the beginning of the year, netback on delivery to the west was negative",— the expert notes.