South Africa: Coal Shipments from RBCT Down 10% M-o-M in Nov’19

Coal shipments from South Africa’s premium coal terminal RBCT (Richards Bay), witnessed a drop of 10% on the month during Nov’19, which had attained its highest total for the CY19 in the previous month.

Data provided by CoalMint research indicates that RBCT had exported 6.7 MnT coal in Nov’19, as against 7.45 MnT recorded in Oct’19.

The month of October had seen an abrupt rise in RBCT’s coal deliveries amid sharp upturn in Indian demand. Apparently, Indian sponge iron sector which had been hit hard this year by a slowdown in construction industry and prolonged monsoon rains, had exhibited greater urgency to procure South African coal shipments during the month.

However, with a gradual improvement in domestic coal supplies wherein state owned CIL had touched the 50 MnT production mark for the first time in the current fiscal, Indian coal buying had receded in Nov’19.

Notably, Indian coal imports from RBCT had slightly come down 2% on the month, marked at 3.31 MnT in Nov’19 as against 3.36 MnT in Oct’19.

Pakistan- the second-largest coal receiver from RBCT had also registered 40% decline in coal intake during the month. The country had procured 0.94 MnT coal in Nov’19 compared with 1.55 MnT noted in Oct’19.

Incidentally, the continual rise in South African coal prices since Sep’19, have lowered the appetite for coal in Pakistan whose major power projects are already facing severe financial difficulties due to weakened currency and consequent cost of coal imports.

The drop in coal intake from RBCT’s chief customers was significant to offset the noticeable growth in imports recorded from the other major coal importing nations.

As a matter of fact, South Korean imports from RBCT surged 118% on the month to 0.32 MnT in Nov’19 compared with 0.15 MnT in Oct’19. While imports from Vietnam and Bangladesh were also registered comparative higher than levels attained in the previous month.

Source: CoalMint Research
Quantity in MnT

During the first 11 months of CY19 (Jan-Nov’19), total coal shipments from RBCT have reached 67.69 MnT, down 4% Y-o-Y from 70.36 MnT noted in the year-ago month.