Westshore Terminal fire at conveyor belt on 28 Dec, impact moderated. Click to read more

News:

A fire broke out at the Roberts Bank Westshore Terminal in Delta, Canada, on the morning of December 28, 2024. The fire was confined to a coal conveyor belt and was quickly extinguished by Delta Fire & Emergency Services. No injuries were reported, and the fire is not considered suspicious.

The Westshore Terminal and the nearby GCT Deltaport were temporarily shut down. Black smoke from the fire was visible in nearby areas, including the Tsawwassen Ferry Terminal. Westshore Terminal is known as Canada's busiest coal export terminal. Authorities are monitoring the site, and further details are awaited.

Impact:

The recent fire at Canada's Westshore Terminals, a key export facility for coking coal, has the potential to influence coking coal prices. Disruptions at major export terminals can lead to supply constraints, which may drive prices upward.

Historically, operational issues at Westshore have impacted coking coal exports. For instance, in 2018, unplanned maintenance at the terminal led to reduced shipments for companies like Teck Resources (or currently known as Elk View Resources owned by Glencore) , affecting their export volumes.

However, the current global coking coal market is experiencing subdued demand and prices. Recent reports indicate that prices have been declining due to unfavorable market fundamentals, with suppliers facing challenges in selling December loadings.

Given this context, while the fire at Westshore Terminals could introduce some supply-side constraints, the overall impact on coking coal prices may be moderated by the existing weak demand in the global market. Market participants will be closely monitoring the situation to assess any potential price movements resulting from this disruption.