Australia’s coal export shipments have decreased by 14.4% to 31.62 million tonnes (mn t) in Jun’20, as compared to 36.92 mn t in Jun’19, according to the latest vessel lineup data.
In the first half of this year, from January to June, cumulative exports have totaled 184.17 mn t, down by 4.5% as against the aggregate shipment volume of 192.80 mn t during H1CY19 (Jan-Jun’19).
[Source: Customs]
Falling shipments to Japan, South Korea and India but rising demand from China—
China has surpassed Japan to become the largest importer of Australian coal in H1CY20, followed by South Korea and India. Generally, these four nations together account for three-fourths of Australia’s total coal exports.
Furthermore, Chinese coal imports from Australia have surged by 19.1% to 12.20 mn t in Jun’20, compared with 10.25 mn t in May’20.
Unlike most other nations, China had made a quick recovery from the Covid-19 viral outbreak after the 76-day lockdown was lifted in late March.
China’s economic recovery has since continued in the subsequent months with consumer spending, manufacturing and investment activities bouncing back strongly, while the pandemic has been largely brought under control. Most businesses in China have gradually been opening and life is starting to return to normal, leading to resurgence in import demand for both thermal and metallurgical coal.
Chinese coking coal imports, in particular, witnessed a steady rise during January-April this year. This was due in part to a backlog from the fourth quarter of 2019 led by stringent import restrictions, coupled with the sharp decline in Australian coking coal prices, outstripping the decline in Chinese domestic prices.
Japan’s coal imports tumble to multi-year lows as the pandemic hit power demand—
Japan has traditionally been Australia’s largest coal export destination over the past two decades. Strikingly, however, Japanese coal imports from Australia shrunk by over 10% to 49.17 mn t in H1CY20, as against 55.05 mn t in the corresponding period of the last year (Jan-Jun’19).
Earlier in May this year, Japanese imports of thermal coal and lignite fell to a five-year low at 7.2 mn t, down by 9.2% year-on-year, as measures to curb the rapid spread of Covid-19 dampened the country’s power demand.
The following table present detailed breakups of the country-wise coal exports from Australia.
| Country | FY19(Jul’18-Jun’19) | FY20(Jul’19-Jun’20) | %Change | Q1 CY20 | Q2 CY20 | %Change | May’20 | Jun’20 | %Change |
| China | 86.09 | 101.86 | 18.3 | 22.65 | 29.89 | 32.0 | 10.41 | 12.20 | 17.2 |
| Japan | 115.56 | 103.43 | -10.5 | 27.88 | 21.29 | -23.6 | 6.32 | 7.14 | 13.0 |
| South Korea | 46.42 | 45.29 | -2.4 | 10.31 | 8.94 | -13.3 | 3.08 | 1.99 | -35.4 |
| India | 49.13 | 41.93 | -14.7 | 11.87 | 6.29 | -47.0 | 1.87 | 1.97 | 5.5 |
| Taiwan | 32.82 | 31.03 | -5.4 | 7.35 | 8.34 | 13.5 | 2.12 | 3.06 | 43.9 |
| Vietnam | 9.62 | 19.09 | 98.5 | 4.87 | 5.36 | 10.0 | 1.64 | 1.74 | 6.0 |
| Netherlands | 6.90 | 7.41 | 7.3 | 1.32 | 1.70 | 28.9 | 0.00 | 0.59 | 100.0 |
| Malaysia | 5.81 | 6.65 | 14.4 | 1.57 | 1.31 | -16.4 | 0.44 | 0.48 | 9.1 |
| Indonesia | 5.51 | 5.13 | -6.8 | 1.57 | 1.31 | -16.7 | 0.50 | 0.33 | -33.1 |
| Thailand | 3.56 | 3.58 | 0.7 | 0.90 | 1.07 | 18.9 | 0.31 | 0.43 | 38.2 |
| Chile | 0.77 | 1.66 | 117.2 | 0.28 | 0.81 | 185.3 | 0.22 | 0.51 | 128.4 |
| Brazil | 4.41 | 2.86 | -35.2 | 0.98 | 0.62 | -36.6 | 0.08 | 0.30 | 290.5 |
| South Africa | 1.32 | 1.97 | 49.2 | 0.76 | 0.20 | -74.1 | 0.00 | 0.14 | 100.0 |
| Others | 15.41 | 8.49 | -44.9 | 1.36 | 1.98 | 45.3 | 0.30 | 0.74 | 144.1 |
| TOTAL | 383.31 | 380.37 | -0.8 | 93.69 | 89.12 | -4.9 | 27.29 | 31.62 | 15.9 |
[Quantity in million tonnes (mn t)]
By Aditya Sinha
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