Australia’s coking coal bulk export shipments rose 2.5% m-o-m to 13.28 million tonnes (mn t) in Nov’21, as against 12.96 mn t in Oct’21.
However, the export volumes have remained fairly stable on a y-o-y basis, compared with 13.24 mn t in Nov’20.
Similarly, the country’s cumulative exports over Jan-Nov’21 totalled 152 mn t ‑ almost flat compared to the volumes seen in the corresponding period last year.
Indian imports from Australia surge
India has retained its position as the largest coking coal importer from Australia, accounting for almost 33% share with imports of over 50 mn t in Jan-Nov’21.
Nevertheless, Indian shipments from Australia dropped 18.6% m-o-m to 4.18 mn t in Nov’21, as against 5.14 mn t in Nov’20.
India’s domestic steel production had risen back to optimum levels with large-scale integrated steelmakers having ramped up capacity utilisation at all major blast furnaces.
Furthermore, Indian finished steel prices remained relatively stable, and steel mills’ profit margins were satisfactory — both of which encouraged higher steel production and thereby necessitated restocking demand for coking coal.
Chinese imports from Australia dwindle
Japan – and other key steel producing nations such as South Korea, Vietnam and Taiwan – have surpassed China as the largest importers of Australian coking coal this year.
As of last year, however, China and Japan together accounted for around 40% of Australia’s total coking coal exports.
Ironically, demand for coking coal from Australia’s main export market, China, has been in a state of permanent decline as the country is rapidly transitioning to cleaner energy sourcing technologies.
Certain other factors, mainly governmental initiatives undertaken as longstanding efforts toward increasing self-reliance on domestically produced coal supplies, are also paving the way for diminished import demand from China.
Japanese coking coal imports from Australia saw an increase of 12.65% m-o-m to 2.9 mn t in Nov’21. Australian coking coal imports by South Korea also witnessed an upsurge, by as much as 62% to 1.9 mn t in Nov’21. Shipments to the Netherlands witnessed a six-month high as quantities traded rose by 75% m-o-m.
Port-wise coking coal exports from Australia
Australia’s Gladstone Port was the biggest coking coal exporting port in the year so far, accounting for over 30% share with exports of almost 46 mn t.
Coking coal exports from this port, however, decreased by 5.1% m-o-m to 4.10 mn t in Nov’21, against 4.32 mn t in Oct’21.
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