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FEATURE ARTICLE-- Which Way Do the Trade Winds Blow?

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A boost of new and planned projects and capacity upgrades has the potential to see the global metallurgical coal market change significantly in the medium and long term. Exporters that have previously been hampered by unfavourable currency exchanges and high FOB costs may find their footing amidst potential global economic downside, as the US dollar saw significant gains against the currencies of other producers in 2018. Factors such as mine type, wage costs and transportation method have a marked effect on a producer’s exposure to local currencies, with some, such as those in Mozambique, able to benefit greatly from periods of depreciation.
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