Coal exports from South Africa have continued the monthly rise to attain a 7-month high total during Oct’19, supported by a sharp upturn in Indian demand.
Data provided by South African customs indicate that export of 7.28 MnT recorded in Oct’19 was 11% higher on the month from 6.53 MnT in Sep’19. Besides, coal volume was also marked 12% higher on the year from 6.51 MnT in Oct’19.
Heavily dependent on Indian buyers for its disposal, South African coal had seen subdued demand from its major customer lately, which was largely attributed to a typical curtailment of industrial activity during the June-September monsoon season. In addition, some market participants said that additional pressures from reduced funding availability resulting in limited industrial output had also weighted down the coal demand.
However, in order to replenish their coal stock prior monsoon and to counter the shortfall in domestic supplies, Indian coal buying from South Africa had picked-up in Oct’19.
Apparently, Indian coal imports surged 51% on the month to 3.98 MnT in Oct’19, recovering well from the 8-month low total attained in the previous month. Coal intake had also registered a 2-fold increase Y-o-Y from 2 MnT coal noted in Oct’18.
South African coal exports to its second-largest customer-Pakistan, increased 8% M-o-M to 1.3 MnT in Oct’19, which was also marked 117% higher on the year from 0.6 MnT in Oct’18.
South Korea was the third-largest coal recipient in Oct’19, with imports of 0.47 MnT. Coal intake by Korea grew 52% M-o-M from 0.31 MnT in Sep’19 but was noted 25% lower on the year from 0.63 MnT in Oct’18.
During the first 10 months of CY19 (Jan-Oct’19), South African coal exports have reached 64.61 MnT, down 1% Y-o-Y from 65.48 MnT noted in the year-ago period.
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