South Korean Coal Imports Remain Stable Y-o-Y in CY18

South Korean coal imports have remain broadly stable during the CY18, as country’s demand for coal was lowered by the resumption of many nuclear reactor coming back from maintenance work.

According to the data provided by customs, coal import by the country was recorded at 150.48 MnT in CY18 against 150.45 MnT in CY17. In absolute terms, the country has recorded 18% growth in imports compared with that witnessed 5 years back, with a steady y-o-y increase noted every year, except that in CY16.

The subdued import in CY18 was consequence of ongoing government efforts to reduce the country’s reliance on coal.

The latest, in a series of measures aimed at reducing coal use, the government is likely to re-impose the sulphur cap on coal burning from March to May’19, a month less than originally expected. The government had earlier inflicted the cap on a trial basis back in Oct’18.

However, as the cap applies to coal burned, not imports, higher sulphur coal can be blended with lower sulphur products, hence Australian coal imports coming into South Korea would not be substantially affected.

A break-up of South Korean coal import shows that receipt of coking and non-coking coal had slightly decline over the year in CY18.

Non-coking coal and coking coal imports had fell to 106.87 MnT and 24.72 MnT in CY18 against 107.2 MnT and 24.75 MnT respectively in CY17.

Imports of Pet Coke were also marked 26% lower on the year at 1.37 MnT in CY18. While Anthracite and Met Coke import had increased y-o-y in CY18.

Source: South Korean customs
Quantity in MnT

Major Coal Exporters:

Australia and Indonesia remained the largest coal suppliers, but South Korea has continued to diversify its coal sources in CY18.

During the CY18, imports from Australia and Indonesia have declined, while imports from Russia, Canada and Colombia have increased, although from a lower base.

Australian coal exports to South Korea fell 4% Y-o-Y to 46.28 MnT, while exports from Indonesia were down 9% Y-o-Y to 37.45 MnT during CY18.

Russia was the third-largest coal supplier. The country has exported 30.37 MnT coal to South Korea in CY18 with a 14% rise from 26.58 MnT in CY17, also increasing its share in total coal.

Canada also gained share in total coal volume, by supplying 13.31 MnT coal in CY18 which was 27% higher on the year from 10.51 MnT in CY17.

Coal supplies from South Africa dropped 7% Y-o-Y to 7.44 MnT in CY18. While Colombian coal exports increased 38% Y-o-Y to 5.24 MnT in the same period.

US, China, Mozambique, Vietnam and New Zealand were among the other major coal exporters to South Korea in CY18.