Australia’s coking coal exports fell by 10% m-o-m in October 2022 to 11.85 million tonnes (mnt). Exports over January-October, 2022 dropped as well, by 9% y-o-y to 126.25 mnt, CoalMint data shows.
Heavy rains and flooding in Australia’s key mining regions, due to the La Nina weather phenomenon, affected mining operations in the region leading to delayed shipments. Amid supply issues, Australian coking coal prices rose by 9% m-o-m in October 2022 to $312/t.
Adding to the supply woes was the workers strike announced by major miner BHP-Mitsubishi Alliance (BMA) over job security and wage payment-related issues.
Exports to major countries fall
Qty in mnt
Australia’s coking coal exports to India dropped only marginally by 2% m-o-m in October. The fall comes amid subdued demand from the steel mills and cheaper availability of met coke from China.
Indian mills have been booking cheaper met coke from China and Indonesia, impacting coking coal demand. India’s met coke imports rose over 180% to 510,000 t in October — the highest in CY22. Around 40% of total shipments were from China.
Coking coal exports to Japan fell by 12% m-o-m to 2.84 mnt in October as the country is facing a downward economic pressure due to prolonged cutbacks in auto production on the back of the chip shortage, raw material inflation, and excessive depreciation in the currency.
Also, Australian shipments to Vietnam declined 17% m-o-m in October, as buyers remained on the sidelines amid an appreciating dollar against other currencies. Also, the post-Covid recovery in the Vietnamese economy has been slow, due to weakening global steel prices.
However, Australian coking coal exports to South Korea rose marginally by 3% in October. Increase in production volume from the automobile sector with easing supply chain disruptions and currency depreciation is likely to boost automobile exports.
Port-wise exports
Qty in mnt
The Dalrymple Bay Coal Terminal (DBCT) received the highest number of shipments followed by Gladstone and Hay Point.
With regard to company-wise exports from DBCT Port, South Walker was the largest exporter followed by Moranbah North and Coppabella. BMA is the sole exporter of coking coal from Hay Point Port.
Company-wise exports
Qty in mnt
The largest coking coal exporter, BHP, exported 3.78 mnt of coking coal in October followed by Jellinbah and Coronado.
Outlook
Australian coking coal exports are expected to fall further as the country is facing the La Nina weather event and heavy rains will disrupt mining operations and transportation. This, in turn, will impact supply.
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