South African coal exports have fallen to a 4-month low of 6.57 MnT in Jan’18, following weaker exports to its major consumers-India, South Korea and Pakistan.
According to the data provided by South African customs, Coal exports in Jan’18 were down 18% from 7.99 MnT in Dec’17, but were up 9% on the year compared with 6.03 MnT in Jan’17.
India remained the top destination for South African coal in Feb’18, procuring nearly 40% of the monthly total. However on the back of improved domestic coal availability, Indian coal buyers had lowered their appetite for imported South African coal. Consequently, Coal import from the country had fallen on the monthly basis.
The continued struggle of CIL to meet its production target coupled with the upcoming summer season in India is likely to create robust demand of coal among the Indian coal users. It may be possible that the government would again prioritize Power sector for the coal supplies.
In the series of event, the Indian coal buyers may cash in from the bearish trend of the South African coal market. South African coal price index API-4 has fell USD 2 since the beginning of the Mar’18; and was assessed at USD 92.30/MT. Market participants had also informed that the supply tightness which had supported the high coal price is expected to ease in Apr’18.
Grade-wise Coal Exports:
South African Bituminous coal exports were down 21% on the month to 6.16 MnT in Jan’18 compared with 7.82 MnT in Dec’17. Anthracite exports had reduced to 0.04 MnT, nearly half of the previous month’s total.
| Grade | Jan’18 | Dec’17 | M-o-M |
| Bituminous Coal | 6.16 | 7.82 | -21% |
| Anthracite | 0.04 | 0.08 | -50% |
| Met Coke | 0.01 | 0.01 | 0% |
| Pet Coke | 0.01 | 0 | – |
| Others | 0.35 | 0.08 | 338% |
| Grand Total | 6.57 | 7.99 | -18% |
Source: South African Customs
Quantity in MnT
Major Coal Importers:
Indian coal import was down 29% M-o-M to 2.7 MnT in Jan’18, however the country had procured more than double of the coal volume from year-ago month of Jan’17.
South Korean coal imports had fell 14% M-o-M to 0.75 MnT in Jan’18, which was also 35% lower on the year compared with 1.16 MnT in Jan’17.
Taiwan was the third-largest coal importer in Jan’18. The country had received 0.47 MnT coal during the month, up 42% M-o-M from 0.33 MnT in Dec’17.
Pakistan had imported 0.46 MnT coal in Jan’18, which was down 30% on the month from 0.66 MnT in Dec’17, but were 5% higher on the year.
Source: South African Customs | Quantity in MnT
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