Canadian coal exports have attained a 4-year high total, by posting a 4% Y-o-Y growth in CY18. According to the data provided by Canadian customs, the country has exported 34.21 MnT coal in CY18 against 32.87 MnT in CY17.
Canadian exports which chiefly consist of coking coal, had witnessed increased demand due in part to continued steel production capacity growth in India & South East Asia, and supply concerns mainly in Australia.
Notably, Canada’s top three coal customers-Japan, Korea and India, had recorded a yearly growth in coal receipt, while import restriction imposed by China had lowered its coal intake during the year.
Major Coal Importers:
A destination-wise break-up shows that Japan accounted for nearly 22% of the total coal intake from Canada in CY18. Coal volume taken by Japan grew 10% Y-o-Y to 7.92 MnT in CY18 against 7.22 MnT in CY17.
South Korean coal imports from Canada increased 8% Y-o-Y to 6.34 MnT in CY18.
Indian coal imports rose 32% Y-o-Y to 4.38 MnT in CY18. As per records, this was the largest coal intake recorded from Canada since CY13 (the period from which CoalMint has maintained custom data for Canada).
Chinese coal imports fell 19% Y-o-Y to 3.72 MnT in CY18.
Among the other major coal receivers from Canada, US and Taiwan had seen relatively stable imports y-o-y, marked at 3.31 MnT and 1.63 MnT respectively in CY18.
Teck Resources’ Annual Result:
Teck Resources, Canada’s largest diversified resources company, also engaged in mining of coking coal, is expecting production in between 26.0-26.5 MnT during CY19.
Teck Resources’ coking coal production of over 7.3 MnT during the fourth quarter of CY18 (Oct’18-Dec’18) was 6% higher compared to the same period a year ago, and set a quarterly production record for coking coal business.
However, annual coking coal production was recorded at 26.2 MnT in CY18, slightly down Y-o-Y from 26.6 MnT in CY17. Net coal sales noted during the year was 26 MnT.
Company’s average price realisation for coking coal was USD 187/MT in CY18, up 7% Y-o-Y from USD 174/MT in CY17.
Raising concerns over softening of coal prices since the beginning of CY19, the company has highlighted that it would continue to monitor the effects, which government policy and trade uncertainty might have on potential price volatility.
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