Australia’s thermal coal export shipments recorded a marginal drop of 2% m-o-m to 18.1 million tonnes (mn t) in Sept’21, as prices gained 30% m-o-m, CoalMint’s data revealed. However, on a y-o-y basis the same rose by 23%.
The country’s exports to its key destinations, Taiwan and South Korea, fell by 19% and 20% respectively. Interestingly, in case of India and Vietnam, the same saw a substantial rise of 104% and 33% respectively despite escalated prices.
The average trade price of Australian 5500 NAR thermal coal has risen by 30% m-o-m to $125/t in September over August, FOB basis. A rush in restocking of thermal coal ahead of winter by China has pulled up various origin thermal coal prices, including Australian, despite the ban on the latter’s imports.
Exports to India rise sharply
Amidst the domestic supply crunch across all coal-consuming sectors in India, buyers are more inclined towards the imported variety.
Demand for Australian coal also gained momentum last month as shipments from Indonesia remained weak due to heavy rains and lower cargo availability.
A few shipments of China reloaded Australian thermal coal cargoes also made their way to India last month as these were relatively cheaper.
Exports to Japan up by 4%
Increased power generation via nuclear and hydro sources last month in Japan restricted any sharp rise in Australian coal imports. Volumes were recorded at 8.17 mn t, up slightly by 4%.
As per data from the Japan Electric Power Exchange, the country has planned to shut operations at power plants with a total capacity of 6.8GW by 4-10 Oct’21, which includes 2.5 GW of gas, 2.3GW of coal and 2.1GW of oil-fired capacity.
Outlook
With the winter season starting, Australian coal imports by north-east Asian countries are likely to rise in October. However, any significant potential rise would be capped by elevated imported Australian coal prices.
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