Russia has witnessed lower exports during the first half year period of CY ’20 due to the negative market conditions resulted from COVID-19.
Data provided by customs indicate that the country had exported 92 mn t coal in Jan-Jun ’20 period, which had come down 14% y-o-y from 106.38 mn t in the corresponding period of previous year.
Country’s largest coal producer-SUEK has stated that the decline in exports was because of the falling prices and demand in global coal market. It was highlighted that adverse market conditions brought down key coal price benchmarks by 30% y-o-y at a time when electricity demand has fallen globally.
Incidentally, exports of non-coking coal utilized for power generation had decreased 8% y-o-y to 70.29 mn t in the six month period. Besides, there was a noticeable decline registered across other coal grades as well.
| Grade | H1 CY20 | H1 CY19 | % Change |
| Non-Coking Coal | 70.29 | 76.02 | -8% |
| Coking Coal | 11.37 | 13.12 | -13% |
| Anthracite | 8.16 | 14.69 | -44% |
| Pet Coke | 1.1 | 0.73 | 51% |
| Met Coke | 1.03 | 1.68 | -39% |
| Others | 0.04 | 0.13 | -69% |
| Total | 92 | 106.38 | -14% |
Source: Russian customs \ Quantity in Million Tonnes
Country-wise exports:
China was the largest coal recipient from Russia in the half year period. The country had bought 14.07 mn t coal in Jan-Jun ’20, which increased 6% y-o-y as against 13.3 mn t in Jan-Jun ’19. However, there was a marginal fall in imports recorded from South Korea, which dropped 2% y-o-y to 11.47 mn t.
Restrictions on domestic lignite usage fueled Turkish coal imports which surged 70% y-o-y to 6.73 mn t in the six month period.
On the other hand, lower coal-fired power generation weighted down coal demand of European countries as Netherlands, Germany and Poland recorded a significant decline in imports from Russia during the period.
Outlook:
The lingering effect of pandemic is expected to pull down Russia’s exports in CY ’20, but with gradual revival in demand the country would benefit from government’s plan to invest in coal industry.
In addition, export growth would be supported by heavy investment in transportation infrastructure, as the country aims to expand its footprint on Asian coal market, where Japan’s utilities are diversifying their supply sources, and South Korea’s new regulations are lifting demand for Russia’s low sulphur coal.
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