US coal exports have continued the downtrend seen on the monthly basis, to post its lowest total for the CY19 during July.
Data provided by US census indicates that coal exported by the country decreased 9% M-o-M to 9 MnT in Jul’19 compared with 9.92 MnT in Jun’19. Coal volumes had also extended its y-o-y fall for the sixth straight month, as exports were marked 27% lower on the year from 12.25 MnT in Jul’18.
US coal demand has been dampened by stiffer competition from an oversupplied global market wherein higher exports from Indonesia coupled with a pull back in supplies from Australia. Besides, the continuous decline in coal prices has envisaged miners to re-consider their production plans.
US energy planer EIA has highlighted in its short-term outlook report that coal production would fall by 15% on the year to 328 million short tons (MMst) during the second half of 2019. Regarding coal exports, it was suggested that volumes would continue to fall amid high Atlantic freight costs in the near term and increased uncertainty in the metallurgical coal market in the longer term.
Grade-wise Exports:
US coking coal exports attained a 5-month low total of 3.32 MnT in Jul’19. Export volumes had fell 30% on the month from 4.71 MnT in Jun’19. Accompanying the decline in coking coal, exports of non-coking coal fell below the 2 MnT mark for the first time over 2018-19, were noted at 1.72 MnT in Jul’19.
However, there was an increase noted in pet coke shipments, which had surged 15% M-o-M to 3.05 MnT in Jul’19.
| Grades | Jul’19 | Jun’19 | % Change |
| Coking Coal | 3.32 | 4.71 | -30% |
| Pet Coke | 3.05 | 2.65 | 15% |
| Non Coking Coal | 1.72 | 2.18 | -21% |
| Met Coke | 0.06 | 0.07 | -14% |
| Anthracite | 0.06 | 0.01 | 500% |
| Others | 0.78 | 0.31 | 152% |
| Grand Total | 9 | 9.92 | -9% |
Source: US customs
Quantity in MnT
Major Coal Importers:
Japan remained the largest receiver of US coal, despite witnessing a 16% decline in monthly coal receipt. The country had imported 0.92 MnT coal in Jul’19 as against 1.09 MnT in Jun’19, which was also 12% lower on the year from 1.04 MnT in Jul’18.
South Korea emerged as the second-largest importer during the month with receipt of 0.89 MnT coal. Korean imports rose 68% on the month from 0.53 MnT in Jun’19.
US coal taken by India dropped 19% M-o-M to 0.84 MnT in Jul’19, falling to its lowest volume since Jan’17.
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