CoalMint’s vessel line-up data reveals, S.Africa’s thermal coal exports in Nov ’20 stood at 7.21 mn t against 6.3 mn t in Oct ’20, whereas, and up by 7.8% on y-o-y basis.
While exports to India (its main market) has recorded a drop of 12% m-o-m in Nov ’20 at 3.49 mn t, exports to Pakistan surged by 75% m-o-m to 1.40 mn t in Nov ’20.
Pakistan fulfills about 60% of its imported coal requirement from South Africa, and the remainder is imported mostly from Indonesia. However, Australia coal is gaining in popularity with its attractive pricing and acceptable grades.
In early November, the government of Pakistan announced a package for industrial sector with 50% reduction in the price for commercial electricity on additional usage by Small and Medium Enterprises. This led to increase in coal demand from Pakistan’s power sector during the month. The country prefers to buy higher-quality South African coal in order to maximise the energy value of each tonne imported and use the lower-quality Indonesian coal for blending with higher grades.
In India, the huge thermal coal stock available at Indian ports, moderate demand from end-users coupled with increased availability of domestic coal restricted S.African coal imports during the month.
However, South Africa also recorded a sharp rise thermal coal exports to countries like Vietnam, UAE, Turkey, Taiwan and Bangladesh in Nov ’20.
Outlook:
South African coal prices have been volatile this month and while there is no fundamental change in demand for S.African coal, bookings are being made in anticipation of a further rise in the index.
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