Australia: Coal Exports Down 5% Y-o-Y in 2017

Australia, the largest coal exporter in the world, has reported a 5% decline in yearly coal exports of 2017, as per the data provided by customs.

The decline was largely due to export delays associated with the impact (on rail lines) of Cyclone Debbie in late Mar’17, which were also affected by industrial actions, transport disruptions and bad weather.

Driven by strong re-stocking demand from China; Australia had achieved its highest monthly coal export total of 33.95 MnT for the CY17 in December. Still, Australian coal exports had fell by 19.49 MnT of the previous years’ total of 387.03 MnT, as the country had managed coal exports of 367.57 MnT in 2017.

Grade-wise Coal Exports:
Non-Coking coal exports from the country had seen little change from 2016. Total exports of non-coking coal were recorded 199.21 MnT in CY17, up 1% from 198.16 MnT in CY16.

Australian Resources and Energy Report has suggested that the high energy and low ash Non-Coking Australian coal would tend to take share from the other exporters of lower quality coal, as countries such as China, South Korea and Taiwan are looking to reduce air pollution, particularly during the winter season. Accordingly, Non-coking coal exports are anticipated to increase in 2018.

Australia’s Coking coal export volume had declined 10% Y-o-Y to 168.35 MnT in CY17, compared with 187.94 MnT in CY16.

Coking coal exports are, however, expected to rebound in 2018, with rise in import demand from China, India, South Korea and Europe, on the back of healthy gains in steel output.

Source: Australian Customs
Quantity in MnT

Major Coal Importers in 2017:
Among the top 7 coal importing countries, only China had recorded growth in import volumes during CY17. Chinese coal import had increased 10% Y-o-Y to 81.79 MnT in CY17, compared with 74.59 MnT in CY16.

Japan was the largest importer of Australian coal in CY17. The country had imported 117.1 MnT coal during the year, which had fell 3% Y-o-Y from 121.31 MnT in CY16.

South Korea, India, Taipei, Netherlands and Malaysia were among the other major coal exporters during the year.

Source: Australian Customs | Quantity in MnT