Australian producers exported 16mn t of thermal coal in April, up by 2.6pc on the year, on the back of rising Vietnamese demand, although shipments likely declined in May.

Exports out of the Port Waratah Coal Services terminals at the Port of Newcastle — Australia's main thermal coal hub — fell by 30pc on the year in May because of flooding in the region.

Vietnamese utilities bought 1.7mn t of Australian thermal coal in April, up by 172pc from 619,456t a year earlier. The country's total coal imports reached a 22-month high in April on the back of restocking demand from utilities.

Thermal coal exports from Australia to China fell by 3.3pc on the year from 6.2mn t to 6mn t in April. But exports to China may rise in the coming months because Chinese coal buyers are turning to Australian mid-calorific value coal on cheaper prices, seeking higher volumes of Australian coal in late April.

Indian utilities bought 423,770t of Australian thermal coal in April, up by 28pc from 330,000t a year earlier. Exports to India could rise in May. India's power ministry in early May directed coal-fired utilities to boost generation until 30 June.

Argus' coal Newcastle 6000kcal NAR fob price has been rising since late-April. It was last assessed at $101.38/t on 4 June, up from $91.71/t on 25 April.

By Avinash Govind