Australian coking coal exports rose by 11% m-o-m to 13.5 million tonnes (mnt) in May 2022. The rise in exports can be attributed to higher supplies to India, South Korea, Vietnam and Taiwan.
- Exports to India were up 6% m-o-m.
- Export to South Korea and Vietnam rose by 77% and 79% respectively in May.
- Taiwan witnessed a whopping increase in exports by 169%.
Quantity in mnt
The rise in exports can be attributed to the fall in prices in early-April from the March-peak which prompted buyers to book volumes that arrived in May.
However, exports to Japan witnessed a drop of 16% m-o-m and volumes to The Netherlands dropped for the second consecutive month in May, by 9%. This is because both the countries had made sufficient bookings in March, despite the high prices, in fear of further escalation in the same.
Port-wise coking coal exports
Interestingly, Gladstone Port recorded the highest shipments in April but its exports fell by 12% in May, while there were no exports of coking coal from Newcastle Port. Except for these two ports, all the other ports exported more in May than in April.
Quantity in mnt
The reason for the hike in exports from Hay Point Port is attributed to increased exports by BHP Mitsubishi Alliance (BMA). It is the largest coal producer in Australia, and a joint venture with BHP and Mitsubishi, each owning 50%.
Where company-wise exports are concerned, BHP was the largest exporter with 9% growth in quantity as compared to April. GMK’s exports surged from 0.03 mnt in April to 0.47 mnt in May while Glencore’s exports rebounded with a whopping 126% m-o-m rise.
Quantity in mnt
Outlook
Australian coking coal prices fell by 30% in the last three weeks from a high of $530/t in May. But, despite this, exports of coking coal are expected to fall as demand for steel in the global market has gone down along with its prices. Furthermore, its biggest importing destination, India, is looking for cheaper Russian coking coal to meet its demand.
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