Australia coking coal exports fell by 7% y-o-y to 153.2 million tonnes (mn t) in 2022 compared to 165.46 mn t in 2021, as per CoalMint data.
Exports fell as the country faced heavy rainfall due to the La Nina effect which affected mining and transportation activities for most of the year. Also, the Russia-Ukraine war impacted global steel and coking coal demand, impacting Australian exports. Coking coal prices touched their all-time high of $650/t FOB in March 2022.
Exports to key importers drop
Qty in mnt
Australia’s coal shipments to key countries – India, Japan and South Korea – recorded a y-o-y decline. Shipments to India fell due to sluggish demand amid the export duty levied on steel by the Indian government in late May, which was removed only towards the end of the year. Subdued export activity for almost six months coupled with weak domestic steel demand and availability of cheap Chinese met coke hit India’s coking coal requirement.
Shipments to South Korea also fell by 15% y-o-y to 19.94 mnt in 2022. The foremost reason was sluggish steel demand and the shutdown of its major steel plant, POSCO, for almost three months due to the damage caused by Typhoon Hinnamor. The country’s crude steel output is estimated to be around 66 mnt in 2022, down 7% y-o-y.
Exports to Japan fell marginally due to slow demand in the domestic automobile sector and shutdown of key plants due to operational maintenance.
However, exports to Vietnam rose by 48% in 2022 to 11.8 mnt. Of total imports by Vietnam, 72% was imported in the January-June period when the country had eased its COVID-19 restrictions. Moreover, in the absence of Indian exporters in the global market due to the export duty on steel, Vietnamese mills sought to fill the gap by channelising more supplies to the European market.
Port-wise exports
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Shipments from major Australian ports fell as heavy rainfall impacted berthing facilities and disrupted supplies. Gladstone Port recorded a drop of 12% in shipments at 44.46 mnt in 2022, followed by DBCT and Hay Point.
Company-wise exports
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The top coking coal supplier, BHP, exported 51.72 mnt of coking coal in 2022, down 10% on the year. The decline can be attributed to the strike by BHP mine workers which affected mining operations. Exports by other miners also fell with the exception of Jellinbah which witnessed a surge of 44% in exports to 7.91 mnt in 2022.
Outlook
Australia’s coking coal exports are expected to rise in 2023. Improving trade relations with China and the free trade agreement with India may boost exports. However, bad weather conditions may again hamper exports from the country.
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