Russian coal producer Suek AG issued a force majeure declaration after a fire at the Vanino Bulk Terminal on October 11. The fire damaged some conveyor belts, making it impossible to load vessels at the port, the company said in a letter to customers. Suek said it is still assessing the damage caused by the fire but cannot predict how long the operations would remain idle.
The Vanino port was constructed in 2018 for exports to China, South Korea, Japan, and Taiwan. In 2020, it shipped 23.2 million tons of dry bulk cargoes. Meanwhile, Suek produced 33.5 million tons of lignite and 67.7 million tons of anthracite last year.
Market participants said the force majeure would unlikely lead to major disruption to market fundamentals. They noted that some volumes could be diverted to another terminal at Vanino, and Indonesian coal could replace the lost supplies in the short term. However, coal prices are expected to extend gains further and deteriorate the ongoing power crisis in China.
