Coal imports by the country have increased 17% m-o-m to 11.57 mn t in Jul ’20 as against 9.91 mn t in Jun ’20. However, the volume was recorded 11% lower on the year from 12.95 mn t in Jul ’19.
After stricter measures implemented by the government to reduce air pollution, imports were curtailed in the first half year due to the restricted use of coal-fired plants.
Incidentally, coal volume bought during Jan-Jun ’20 was down by 11% y-o-y to 59.79 mn t compared with 67.35 mn t recorded in the corresponding period of previous year.
However, indicating sign of revival, imports touched a 7-month high total during Jul ’20 driven by higher intake of non-coking coal, which surged 20% m-o-m to 9.2 mn t. Whereas, imports of remaining coal grades were almost stable on the monthly basis.
| Grades | Jul’20 | Jun’19 | % Change |
| Non-Coking Coal | 9.2 | 7.64 | 20% |
| Coking Coal | 1.54 | 1.54 | 0% |
| Anthracite | 0.53 | 0.53 | 0% |
| Pet Coke | 0.13 | 0.03 | 333% |
| Met Coke | 0.02 | 0.02 | 0% |
| Other | 0.14 | 0.14 | 0% |
| Total | 11.57 | 9.91 | 17% |
Source: Customs | Quantity in mn t
Major coal suppliers:
Australia was the largest coal exporter to South Korea in Jul’ 20. Coal supplied by the increased 11% m-o-m to 3.1 mn t as against 2.79 mn t in Jun’ 20, but was marked 29% lower on the 4.39 mn t in Jul ’19.
Russia came behind second with export of 2.92 mn t coal, thus witnessing an 11-month high total in the process. While, both these countries had registered a decline in coal supplies on y-o-y basis, there was no such case with Indonesia.
Notably, Indonesian coal exports increased 15% y-o-y to 2.86 mn t in Jul ’20; in addition growth of 51% was seen on the monthly basis from 1.89 mn t in Jun ’20.
Outlook: South Korean coal imports are expected to remain under pressure due to weaker power demand, while competitive gas pricing and rise in nuclear availability offer an additional downside risk.
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