Amidst volatility in the international market, Australia’s thermal coal export shipments fell by 6% m-o-m to 17 million tonnes (mn t) in Oct’21, CoalMint’s data reveals. The country’s exports to its key destinations, South Korea and Japan, fell by 34% and 11% respectively.
Interestingly, in case of India, the same saw a substantial rise of 106%.
In tandem with global coal prices, Australian 5500 NAR prices also witnessed a considerable correction last month, falling by 10% m-o-m to $135/t, FOB basis.
Exports to India rise for second-straight month
Australian exports shipments to India were recorded at 2.5 mn t, up by whopping 106% m-o-m in Oct’21.
Amid fluctuating coal prices in South Africa and lower cargo availability from Indonesia, Indian importers continued booking Australian coal in higher quantities.
Demand for Australian coal gained momentum recently as shipments from Indonesia were disrupted due to heavy rains. Several reloaded Australian coal shipments from China also made their way to India over the last few months being relatively cheaper.
Indian cement manufacturers were the largest importers of Australian coal given that it was relatively cheaper compared to South African RB2 (5500 NAR) which was traded at an average price of $168/t in Oct’21.
Exports to Japan fall 11%
After rising over the last four months, Australian export shipments to Japan fell to 7.3 mn t, down 11% due to the rise in nuclear and hydro power generation in this country.
The country’s rising focus on reducing carbon emissions has also compelled power utilities to switch from coal to oil. Japan’s crude oil imports are likely to rise sharply this year ahead of the peak demand in winter.
Outlook
With the peak winter demand approaching across various parts of north-east Asia, Australian coal imports are likely to remain supported in the coming month.
Leave a Reply