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The Russian authorities are discussing extending the moratorium on the exchange rate export duty for thermal coal and anthracite, which expires on August 31; the Ministry of Finance and the Ministry of Economic Development are in favor of returning the duty, the Kommersant newspaper writes , citing sources in the industry.
From October 1, 2023 until the end of 2024, the Cabinet of Ministers of the Russian Federation introduced flexible export duties tied to the ruble exchange rate to protect the domestic market. In particular, they affected the export of copper, zinc, coal, aluminum, and gold. At an exchange rate of 80 to 85 rubles per dollar, the duty is 4%, at an exchange rate of 85-90 rubles - 4.5%, at a dollar above 90 rubles and below 95 rubles - 5.5%. The highest duty of 7% is applied at an exchange rate of the American currency above 95 rubles. At an exchange rate below 80 rubles, the flexible duty is zeroed out.
Later, the Cabinet of Ministers cancelled export duties on thermal coal and anthracite for the period from May 1 to August 31.
"The relevant ministries are discussing the extension of the moratorium on the exchange rate export duty for thermal coal and anthracite, which expires on August 31. The Ministry of Finance and the Ministry of Economic Development are in favor of restoring the duty, but market participants point to the remaining difficult situation in the industry, where profits have fallen more than 30 times in a year," the article says.
According to Kommersant, the situation on the markets and in the industry did not undergo any positive changes following the results of the second quarter of 2024. The average price of thermal coal fell by 3%, to $80 per ton. The price of metallurgical coal remains in the range of $136-138 per ton, at the level of the first quarter of 2024. The newspaper's sources report that export prices for thermal coal, although they have increased, remain significantly lower than they were during the price rally of 2022.
As noted, the profit of coal industry companies before tax for the first five months of 2024 decreased to 8 billion rubles against 248 billion rubles for the same period last year. A loss was recorded in the thermal coal and anthracite segments. Coal exports in the second quarter of 2024 decreased by 16% year-on-year, and thermal coal exports by 40%.
