Colombia: Coal exports sink to multi-year low in Mar’25

• Colombia’s Mar’25 coal exports halve from Feb
• China halts Colombian imports on weak demand

Mysteel Global: Total coal exports from Colombia, the world’s sixth-largest coal exporter, during March plummeted to just 2.12 million tonnes (mnt), touching a new low since November 2020, according to the latest data from the National Administrative Department of Statistics of Colombia (DANE).

The March figure nearly halved the 4.2 mnt the country exported in February, while also being 5.7% lower on a y-o-y basis, the DANE data indicated.

Colombia’s coal exports are primarily thermal coal, known for its low sulphur and ash content and high calorific value. Major destinations include Europe, China, India, and South Korea, Mysteel Global learnt.

However, China did not import any coal from Colombia in March, marking the second month with zero imports this year, data from the General Administration of Customs of China showed. This indicated China’s waning appetite for Colombian coal compared to the robust imports seen in 2023-24, given subdued domestic consumption and persistent oversupply of the fossil fuel in China, Mysteel Global understands.

Over January-March, Colombia exported a total of 9.04 mnt of coal, slumping by 40.5% y-o-y, according to the DANE data.

Looking ahead, Colombian coal exports are expected to decline further in the near term, partly due to the Anglo-Swiss commodities giant Glencore’s planned output cuts at its subsidiary Cerrejon mine, one of the major coal mines in Colombia.

On 25 March, Glencore announced plans to begin reducing production at its Colombia coal mine by 5-10 mnt annually, citing “unsustainable prices for thermal coal transported via sea” as the prime reason. It could take the mine’s annual output down to 11-16 mnt.

During 2024, Cerrejon churned out 19 mnt of coal, according to its annual report. Its mining operations were disrupted by 333 blockades of its rail line last year, halting production for 135 days, the company’s president Claudia Bejarano revealed at a recent event in La Guajira, where the mine is located.

Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.