Turkey’s coal import has decreased 35% M-o-M to 3.01 MnT in Aug’18 compared with 4.66 MnT in Jul’18, which was also 29% lower on the year compared with 4.26 MnT in Aug’17.
The drastic fall in imports could be attributed to the ongoing weakness in Turkish economy and corresponding depreciation in Lira, which has made country’s imports expensive. From the beginning of the second quarter, the Lira has depreciated by more than 50% against the US dollar.
Besides, Turkey is also facing a trade tussle with the US. Although the recent imposition of a regulatory traffic on US coal is unlikely to affect Turkey’s coal trade, as the country imports only 12% of its total imports from the US which can be easily be replaced with coal from Canada and Australia.
However, the effect of depreciating Lira would be more pronounced as Turkey meets one third of its electricity needs from coal. The country’s majority of the domestic coal reserves are low in calorific value which makes it necessary for them to import high calorific coal.
The prolonged weakness of Lira against US dollar will eventually start to have a negative impact on Turkey’s energy and coal demand.
Grade-wise Coal Imports:
Turkey’s non-coking coal imports dropped 34% M-o-M to 2.29 MnT in Aug’18 compared with 3.48 MnT in Jul’18.
Import of all the major coal grades had took a hit during the month, except Met coke, whose imports had increased nearly 7 folds to 0.14 MnT in Aug’18.
| Grade | Aug’18 | Jul’18 | M-o-M |
| Non Coking Coal | 2.29 | 3.48 | -34% |
| Pet Coke | 0.28 | 0.46 | -39% |
| Coking Coal | 0.27 | 0.57 | -53% |
| Met Coke | 0.14 | 0.02 | 600% |
| Anthracite | 0.03 | 0.12 | -75% |
| Grand Total | 3.01 | 4.66 | -35% |
Source: Turkish customs
Quantity in MnT
Major Coal Exporters:
Exports from Turkey’s major coal supplier-Colombia were down 37% M-o-M to 1.34 MnT in Aug’18, which was also 25% lower on the year compared with 1.78 MnT in Aug’17.
Russian coal export fell 21% M-o-M to 1.05 MnT in Aug’18 against 1.33 MnT in Jul’18.
Export from the US dropped to its lowest monthly total of 0.35 MnT for CY18 in Aug’18, recording a decline of 61% from the previous month.
Export from Canada was recorded after a two month’s gap, while China, Iran, Spain and Venezuela were among the other major coal suppliers to Turkey in Aug’18.
Source: Turkish customs | Quantity in MnT
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