South African coal exports have decreased 15% Q-o-Q to 17.4 MnT in Q3 CY19 as against 20.43 MnT in Q2 CY19. Data provided by customs showed that export volume was also marked 8% lower on the year from 18.96 MnT noted in Q3 CY18.
The substantial drop in volume was mainly attributed to the subdued coal off-take noted from its chief customer-India, whose coal intake reduced by nearly one-third Q-o-Q during Q3 CY19.
Lower coal intake from Indian buyers was seen as a consequence of a slowdown in Industrial activity amid monsoon season. Evidently, South African exports to India fell to 8.79 MnT in Q3 CY19 as against 13.12 MnT in Q2 CY18.
Coal exports to Pakistan remained almost stable on the quarter, noted at 2.65 MnT in Q3 CY19.
Meanwhile, South Korean coal imports from Africa surged 88% Q-o-Q to 1.26 MnT in Q3 CY19. Apparently, the country had loosen-up its policy norms to move away from coal based power generation, in order to meet the peak summer demand.
Overall, South African coal exports have remain relatively flat over CY19, weighing down by an abundance of competing coal in the seaborne market. Notably, Indonesia’s undisciplined exports have had a big impact on South African coal market, which also has been affected by a terminal demise in demand from Europe.
As a matter of fact, South Africa’s major consumer in Europe-Netherlands has slashed its coal sourcing in Q3 CY19 by nearly 79% from the levels attained in the year-ago period.
During the first 9-months of CY19 (Jan-Sep’19), South African coal exports have reached 57.33 MnT, down 3% Y-o-Y from 58.97 MnT noted in Jan-Sep’18 period.
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