South African Coal Exports to India Fall by 40% M-o-M in Jul’17

Enhanced coal supply from domestic miner CIL has resulted in the fall out of Indian demand for South African coal, the data provided by customs shows. South African coal export to India has fallen 19% Y-o-Y to 19.32 MnT during Jan’17-Jul’17, compared with 23.85 MnT coal exported during Jan’16-Jul’16 period.

On the monthly basis, exports to India decreased 40% M-o-M to 1.69 MnT in Jul’17. Exports were also 28% lower than 2.36 MnT export volume attained during Jul’16.Higher coal prices could have contributed to the decline in coal exports from Africa during the month.

South African coal prices were moving in sync with the rising Newcastle thermal coal prices during the month. The average price of 5500 NAR coal (generally preferred by Indian buyers) had increased 6% M-o-M to USD 71.65/MT in Jul’17, FoB Richards Bay, from USD 67.57/MT in Jun’17.

South Africa was the world’s fifth largest coal exporter in 2016. However, the country has witnessed fall in coal exports during Jul’17. The country’s exports has decreased 31% M-o-M to 4.92 MnT in Jul’17 compared with 7.08 MnT in Jun’17.

Coal supplies to Richards Bay port was affected during the month, as the railway network which transports coal to the port had undergone one week’s shut down for maintenance.

On the yearly basis, exports in Jul’17 were almost unchanged from 4.90 MnT coal export volume attained during Jul’16. While the total coal exports during CY17 (till Jul’17), has increased 10% Y-o-Y to 45.37 MnT, in comparison with 41.07 MnT coal exported during Jan’16-Jul’16 period.

Grade-wise Coal Exports:
Bituminous coal had accounted about 95% in total coal exports for the month. However, Bituminous coal exports have fallen 31% M-o-M to 4.7 MnT in Jul’17. Exports of Anthracite coal have also decreased 28% during the month to 0.13 MnT.

Source: South African Customs
Quantity in MnT

Major Coal Importers in Jul’17:
Pakistan was the second-largest coal importer in Jul’17 behind India, followed by South Korea, Spain, Taiwan and Mozambique.

Pakistan’s coal imports are thriving on the CPEC project, under which many power plants are scheduled to be constructed. the country’s import during the month has increased 41% M-o-M to 0.65 MnT in Jul’17.

South Korea, the third-largest coal importer had received 0.37 MnT coal in Jul’17, down by 38% M-o-M. The country had not imported any coal shipment from Africa in Jul’16.

Quantity in MnT