South Africa has witnessed a steady coal exports during the first half period of CY19, wherein a drastic fall in shipment to South Korea was balanced out by an appreciable growth in volumes to India.
Data provided by South African customs indicate that the country has exported 39.92 MnT coal in H1 CY19, drawing almost stable volume in comparison with 40.01 MnT noted in H1 CY18 period.
Exports on monthly basis was noted at 6.9 MnT during Jun’19 as against 6.92 MnT in May’19.
India Boosts Exports in H1 CY19
After making a slow start to the year, Indian coal buying from South Africa gained momentum, noting monthly shipments in excess of 4 MnT during the Mar-May’19 period.
Eventually, the growth in coal intake came to a halt during Jun’19, wherein coal volume had fell 19% M-o-M to 3.78 MnT. This was in line with the monsoon season where heavy rainfall slows construction and industrial activity, thereby affecting demand from Indian sponge iron manufacturers.
Over the course of 6-month period of CY19, Indian coal sourcing from South Africa increased 18% Y-o-Y to 22.2 MnT in H1 CY19 compared with 18.81 MnT in H1 CY18.
Demand from South Korea Remain Subdued
South Korea has implemented a range of measures to reduce the country’s reliance on coal-fired power generation including the cancellation of new coal-fired power plant capacity and shutdown of older plants.
The country had also made skew changes in taxes to encourage a move away from coal and towards gas. Ultimately, these reforms have drastically reduced South Korean coal imports. During the 6-month period, coal intake by Korea was down 65% Y-o-Y to 1.67 MnT.
Among its other major coal importers, South African coal supplies to Pakistan remained firm y-o-y in H1 CY19. Shipments to Pakistan moved up 5% Y-o-Y to 5.63 MnT in H1 CY19 compared with 5.35 MnT in H1 CY18.
There was a significant rise seen in Vietnam’s coal sourcing from Africa, as the country mulls higher imports to cater the rising demand of the fuel for power generation.
Vietnam emerged as the fourth largest coal-buyer in H1 CY19 period, with imports of 1.24 MnT coal. Apparently, the country had not taken any coal from Africa in the year-ago period.
Source: South African customs | Quantity in MnT
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