Australian coking coal export totalled 13.2 million tonnes (mnt) in September, up 8% m-o-m but dipped 2% y-o-y as per CoalMint’s vessel line up data. Interestingly, exports to its top two traditional destinations, India and Japan, recorded a rise in September.
Trade flow
Qty in mnt
Australian coking coal’s traditional buyers, India and Japan, recorded a rise of 25% and 9% m-o-m, respectively in September. On the other hand, exports to South Korea have come down by 16%.
Although steel demand globally is sluggish, Indian steel mills have started restocking as the monsoon is over and the festive season has began. Japan’s steel demand is likely to improve as construction activities restarted there and constraints related to manufacturing are likely to ease. Also, with more-than-expected rains likely in Australia in the coming months due to the La-Nina alert, both Indian and Japanese mills have booked coking coal in advance to avoid disruptions in supplies.
Meanwhile, steel demand in South Korea remained subdued in September as major steel manufacturer POSCO’s Pohang plant was undergoing repairs due to damage caused by the recent typhoon.
Coking coal exports to Vietnam and Taiwan fell by 24% and 1%, respectively m-o-m. Sluggish global steel demand, especially from their key importer Europe is to be blamed for this fall.
Port-wise coking coal volumes
Qty in mnt
The Dalrymple Bay Coal Terminal (DBCT) received the highest number of shipments followed by Hay Point. Gladstone Port shipments fell to a 2-year low, as heavy rains in Queensland due to La Nina affected supply.
With regard to company-wise exports from DBCT Port, Moranbah North was the largest exporter followed by South Walker and Coppabella. BMA is the sole exporter of coking coal from Hay Point Port.
Company-wise exports
Qty in mnt
When we look at company exports, BHP-Mitsubishi Alliance (BMA) exported the highest quantity of coking coal in September 2022, at 3.60 mnt. The company is the largest exporter to India, Japan, and South Korea.
Anglo American had the second-largest exports at 0.77 mnt, followed by Coronado, at 0.54 mnt.
Outlook
Australia’s coking coal exports are expected to be range-bound in October. This will come amid sluggish global steel demand, production cuts by steel mills in Japan, Korea, Europe and Vietnam, and also because of heavy rains that are resulting in supply constraints there.
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