South Korean coal imports have fallen 16% on the month in May’18, after attaining its year-high total in the preceding month.
According to the data provided by South Korean customs, the country’s coal import were marked 11.68 MnT in May’18, against 13.6 MnT in Apr’18 (which is the highest monthly import for the CY18). Import in May’18 was however, 3% higher on the year than the levels attained in May’17.
South Korea’s imposition of a strict sulphur cap on imported coal is likely to affect its coal sourcing. From Jul’18, South Korean utilities will be restricted to burning coal with an average sulphur content of 0.4% over the course of the year, part of government measures to combat air pollution.
Such a low sulphur limit would effectively lower South Korean coal imports from Australia, which generally produces coal with a higher energy value but with higher sulpur content, and would pay the way for more Indonesian, South African and Russian coal imports into the country.
During the first 5 months of CY18 (Jan’18-May’18), South Korean coal imports have increased 3% Y-o-Y to 63 MnT, compared with 61.41 MnT in Jan’17-May’17.
Grade-wise Coal Imports:
South Korean non-coking coal import had dropped 17% on the month to 8.14 MnT in May’18, compared with 9.84 MnT in Apr’18. Coking coal imports were down 25%M-o-M to 1.81 MnT in May’18.
Anthracite coal imports into the country had increased 7% M-o-M to 0.78 MnT in May’18, a handsome amount of Pet coke was also imported during the month.
| Grade | May’18 | Apr’18 | M-o-M |
| Non Coking Coal | 8.14 | 9.84 | -17% |
| Coking Coal | 1.81 | 2.42 | -25% |
| Anthracite | 0.78 | 0.73 | 7% |
| Pet Coke | 0.27 | 0.02 | 1250% |
| Met Coke | 0.03 | 0.03 | 0% |
| Others | 0.65 | 0.85 | -24% |
| Grand Total | 11.68 | 13.9 | -16% |
Source: South Korean Customs
Quantity in MnT
Major Coal Exporters:
Australia replaced Indonesian to become the largest coal exporter to South Korea, however, the country had witness a fall in monthly coal exports in May’18.
Australian coal exports were marked 3.04 MnT in May’18, down 12% M-o-M from 3.47 MnT in Apr’18, which was also 14% lower on the year compared with 3.53 MnT in May’17.
Russia was the second-largest coal exporter in May’18. The country’s coal supplies to South Korea had decreased 16% M-o-M to 2.53 MnT in May’18, but were slightly higher on the year than the levels attained in May’17.
Indonesian coal exports were down 31% M-o-M to 2.48 MnT in May’18, which was also 12% lower on the year compared with 2.82 MnT in May’17.
Canada, South Africa, Colombia and China were among the other major coal exporters in May’18.
Source: South Korean customs | Quantity in MnT
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