Australian thermal coal exports dropped 11% m-o-m to 15.27 million tonnes (mnt) in January 2023, according to CoalMint’s vessel line-up data. Australian coal exports were impacted due to heavy rain causing the derailment of a number of container wagons, damaging railway tracks and overhead power lines, thereby directly affecting supplies.
qty in mnt
Exports to key Asian countries dropped to 14.24 mnt in January as against 15.36 mnt in December.
However, exports to India picked up by 12% to 1.87 mnt. Australian 4600 NAR grade coal was being procured, especially by the Indian sponge iron sector. This coal has a fixed carbon (FC) content of 42-43% and volatile matter (VM) of 27-28%. One tonne of sponge iron requires about 1.15 t of this grade of coal. However, it is being used in different blends with South African and domestic coal, CoalMint learnt from sponge producer sources.
Shipments to Japan and South Korea dropped for the month to 7.24 mnt and 1.54 mnt respectively. This was due to the diversion of material to Europe.
In a recent update, Australian miners are in talks with the government of New South Wales to reserve up to 10% of output for domestic supply with the aim to reduce energy costs.
Australian coal miners are receiving inquiries from Chinese buyers for new supply agreements this year, in the latest indication that China is ramping up coal sourcing from Australia after the unofficial ban on Australian coal shipments was lifted in early January.
Outlook
Australian thermal coal exports may get a boost with resumption of imports by China and sanctions on Russian coal. However, cyclone forecasts in Australia over the next 10 days may affect total exports this month.
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