Canada: Coal Exports Up 16% Y-o-Y in May’17

India was the second-largest coal importer from Canada during the month.

Canada has witnessed a growth of 16% Y-o-Y in its monthly coal exports. The country has exported 3.08 MnT coal in May’17 against 2.66 MnT exported during May’16. On the monthly basis, coal exports have fell by 2% from 3.13 MnT in Apr’17.

Moreover, Export volumes have not changed much in the first 5 months of 2017.During Jan’17-May’17, Canada has exported 13.91 MnT coal, with a marginal increase of 0.5 MnT from Jan’16-Jun’16 exports of 13.41 MnT.

Grade-wise Coal Exports:
Canada majorly exports Bituminous coal and Pet coke on the monthly basis.

Exports of Bituminous coal fell by 6%, while exports of Pet coke increased by 24% during May’17.

Source: Canada Customs
Quantity in MnT

Surge in Indian Coal Imports:
Japan remained the major coal importer of Canadian coal in May’17. However, India has increased its monthly coal imports from Canada by 80% M-o-M, to become second-largest coal importer in May’17.

India has imported 0.45 MnT coal during the month against 0.25 MnT exported during Apr’17. Also, Coal imports in May’17 were 36% higher than 0.33 MnT coal exported in May’16.

Coal Imports from Canada is expected to escalate further, as India’s largest steel manufacturers SAIL has said it was in talks with Canadian coal suppliers in a bid to diversify away from Australia.

SAIL had entered talks with Canada’s Teck Resources for a coal supply agreement, potentially scaling back on the coal it sources from BHP which supplies about 75% of its demand. India makes up about 15% of BHP’s coal sales.

In FY18, SAIL plans to import 10-12 MnT of Coking Coal.