Canada: Monthly Coal Exports Surge in Mar’17

Canada is ranked eighth in the world among the major coal exporting countries. The indigenous production of coal exceeds the consumption within the country. Hence, Coal Exports play an important role in the Canadian economy.

Canada witnessed a twofold increase in monthly coal exports of Mar’17. Exports increased from 1.75 MnT in Feb’17 to 3.52 MnT in Mar’17, according to the data released by Canadian Customs.

Moreover, Exports rose by 9% Y-o-Y compared with 3.52 MnT exported during Mar’16.

Despite the increase in monthly exports, total coal export in the first quarter of 2017(Jan’17-Mar’17) stood at 7.70 MnT, down by 5% compared with 8.11 MnT exported during the corresponding period of previous year.

The reason for Rising Chinese Coal Imports:
Demand for sea-traded coal by China has been aggravated by its shift away from producing much of its own coal to fight pollution.

In order to curb pollution, China has decided to shut down mines in Xinjiang province as a part of country’s coal capacity reduction program.

However, in order to meet coal needs of power utilities and Steel mills, China has increased its coal imports.

Canada Grade-wise Coal Exports:
Canada exports Bituminous coal (both Metallurgical and thermal grade) and pet coke every month.

During Mar’17, exports of both these coal commodities rise on the monthly basis.

Source: Canadian Customs
Quantities in MnT

Major Coal Importing Countries from Canada:
China replaced Japan as the top coal importer from Canada in Mar’17. South Korea, India and the United States were among the other major coal receiving countries.

Monthly imports of China and Japan have significantly increased in Mar’17. While  China has recorded growth of 188% M-o-M to 0.87 MnT; Japan’s import rose 125% M-o-M in Mar’17.

However, Japan has witnessed a fall in yearly coal shipments by 29% compared with 1.13 MnT in Mar’16, while China has registered a growth of 29% Y-o-Y.

South Korea, the third-largest coal importer, received 0.56 MnT coal. Imports in Mar’17 have increased by 89% M-o-M and 38% Y-o-Y.