South African coal exports have increased 4% on the month to 7.06 MnT in Sep’18 compared with 6.77 MnT in Aug’18. Notably, export figures were recorded at 6-months high in Sep’18, with an improved buying from its major importer-India.
Indian appetite for South African coal has seen a regular growth in monthly basis post-monsoon, where increased demand from power sector had affected domestic coal supplies for country’s non-power sector which basically rely on coal from South Africa.
However, Indian buying has been slightly lower than the levels seen during the corresponding period of previous year. Apparently, South African coal export has remained subdued in the past two months on the year-on-year basis.
Particularly, export in Sep’18 was 15% lower on the year compared with 8.26 MnT in Sep’17.
Total coal exports during the 9-month period (Jan’18-Sep’18) have reached 58.97 MnT, down 3% Y-o-Y from 60.75 MnT in the corresponding 9-month period of CY17.
With a fall in Chinese thermal coal sourcing, global coal demand has taken a hit which has now started to take its toll on South African coal prices as well. South African coal index, washing off the gains that were seen since the beginning of CY18 has now begun to slow down, being assessed at USD 96.2 as on 9 Nov’18.
Major Coal Importers:
Indian coal imports increased 9% M-o-M to 3.24 MnT in Sep’18 but were 19% lower on the year from 3.99 MnT in Sep’17.
Netherlands has certainly benefited from the large volumes of coal piled at RBCT, and a slower demand coming from Asia. The country having already surpassed its previous years’ import total, continued its rising trend by procuring 0.84 MnT in Sep’18. Netherlands was also the second-largest coal importer during the month.
Presidential elections in Pakistan had lowered coal demand in the country which has witness a 37% drop in coal imports in Sep’18. Import during the month was 0.56 MnT against 0.89 MnT in Aug’18.
Turkey, Taiwan, Mozambique and South Korea were among the other major coal importers in Sep’18.
Source: South African customs | Quantity in MnT
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