According to the vessel line-up data compiled by CoalMint Research, coal shipments from RBCT (Richards Bay Coal Terminal) have fallen 14% on the month to 5.41 MnT in May’18. RBCT is the largest coal export facility in South Africa.
The monthly total was down from 6.31 MnT in Apr’18, and was also 21% lower on the year than the levels attained in May’17.
Coal export shipment from RBCT had fallen below the 6 MnT mark for the first time in the last 13 months, driven by lower import by its major customers-India and Pakistan. While the surge in South African coal prices had also affected coal exports from RBCT.
Still, on the back of remarkable performance on the year-on-year basis in the past months, total coal shipments from RBCT has increased 7% Y-o-Y to 33.03 MnT during Jan’18-May’18, against 30.78 MnT in Jan’17-May’17.
As per CoalMint’s assessment, monthly average price of South African 5500 NAR coal had increased 2.35% on the month to USD 79.45/MT on the FoB basis in Apr’18, which has continued its upward journey as a result of the supply tightness. At present, offers for 5500 NAR coal were heard at USD 90-91/MT, FoB Richards Bay.
The prevailing offers for South African coal are proving to be too high for Indian buyers, as traders have reported few deals concluding at the current levels. Many Sponge iron manufacturers have also claimed that the current coal prices were not viable to carry out their operations. South African coal demand from India is likely to remain subdued, with many users said to have already stoked enough coal before the rainy season.
Major Coal Importers:
Coal import from both India and Pakistan had fallen on the monthly basis in May’18. Indian coal import from RBCT was down 25% M-o-M to 2.42 MnT, against 3.23 MnT in Apr’18; while Pakistan’s import had decreased 18% M-o-M to 0.66 MnT in May’18.
South Korea had witnessed an increase of 17% in monthly coal imports from RBCT; besides, Taiwan had also procure 0.33 MnT coal in May’18 after recording nil import in the previous month.
Source: CoalMint Research, Vessel Line-up data | Quantity in MnT
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