US thermal coal exports jumped in January to a three-month high, led by shipments headed to India, Morocco and South Korea soared.

A total 4.47mn short tons (4.05mn metric tonnes) of steam coal and anthracite departed US ports in the first month of this year, up from 3.09mn st in the same month of 2023, preliminary data released by the US Commerce Department today show. The last time US thermal coal exports were higher was in October 2023.

Shipments rose on the year prior to every continent except Europe, reflecting efforts in the back half of 2023 to find other buyers for US coal as a confluence of market fundamentals kept inventories at European ports elevated and limited interest in spot coal purchases. The largest volume increases were in exports to India, Morocco, South Korea and China. Exports to Canada, Brazil, South Africa and Honduras also were substantially higher than they had been a year earlier.

Spain was the only country in Europe to have significantly more US steam coal heading there in January when compared with a year earlier. Census data show US thermal coal exports to that country tripling to 79,634st in January. But that was not enough to offset a more than 150,000st decline in exports to the Netherlands and other European countries, including France, the UK and Germany.

Logistics also played a role in US steam coal exports being higher in January than they had been a year earlier, with some shippers loading volumes in January that were delayed in late 2023 by low water levels on inland US rivers as well as longer transit times for dry bulk vessels moving through the Panama Canal.

Rail service also has improved since early last year.

Steam coal exports out of the New Orleans, Louisiana, Census Bureau district in January were the highest since March 2023 and topped year-earlier levels by 6.5pc, rising to 1.15mn st.

Thermal coal exports out of Norfolk, Virginia, nearly doubled on the year prior, to an almost four-year high of 896,148st from 471,908st in January 2023.

In addition, steam coal exports out of the Seattle, Washington district – a throughway for Wyoming and Montana coal exports heading to Asia out of terminals in British Columbia, Canada – were more than double what they had been a year earlier, climbing to 460,730st from 216,196st. That at least partly reflects improved rail service in western North America. Major western coal shippers were still contending with delays in early 2023. Both bituminous and sub-bituminous coal exports out of Seattle in January were higher than a year earlier. Sub-bituminous coal shipments climbed to 358,738st from 215,162st.

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