Japanese coal imports have recorded a sizeable incline during the month of May’18 after falling in Apr’18.
According to the data provided by Japanese customs, coal import by the country had increased 6% on the month to 16.29 MnT in May’18 compared with 15.4 MnT in Apr’18. Imports in May’18 were also 9% higher on the year than the levels attained in May’17.
During the first 5 months of CY18 (Jan’18-May’18), Japanese coal imports totaled 80.52 MnT, with a marginal growth of 1% Y-o-Y over the corresponding period’s total of 79.64 MnT marked in CY17.
In a recent development, Japan-based electricity Generation Company Tohoku Electric Power is said to have abandoned the price negotiations with its Australian thermal coal supplier Glencore for term contract of coal shipments over the Apr’18-Mar’19 Japanese financial year.
The annual Japanese reference price derived from Tohoku and Glencore’s annual price agreement is used as a benchmark for term contract for Asian buyers who seek deliveries of Australian thermal coal.
The failure in reaching to a price negotiation would mean that the buyers reliant on Japanese reference price would now have to find another means of pricing their coal deliveries during Apr’18-Mar’19 period.
Grade-wise Coal Imports in May’18:
Japanese imports of both Non-coking and Coking coal had increased during the month. Non-coking coal imports were up 8% M-o-M to 10.67 MnT in May’18, while Coking coal imports had increased 7% on the month to 4.19 MnT.
Anthracite coal imports too had recorded increase in May’18, while imports of both Met Coke and Pet Coke had fell 21% during the month.
| Grade | May’18 | Apr’18 | M-o-M |
| Non Coking Coal | 10.67 | 9.85 | 8% |
| Coking Coal | 4.19 | 3.9 | 7% |
| Anthracite | 0.56 | 0.51 | 10% |
| Pet Coke | 0.33 | 0.42 | -21% |
| Met Coke | 0.15 | 0.19 | -21% |
| Others | 0.39 | 0.54 | -28% |
| Grand Total | 16.29 | 15.4 | 6% |
Source: Japanese Customs
Quantity in MnT
Major Coal Exporters:
Australia remained the largest coal exporter in May’18. The country had witnessed no significant change in coal supplies to Japan on the monthly basis. Exports were recorded at 9.48 MnT in May’18, up 13% Y-o-Y from 8.42 MnT in May’17.
Indonesia, the second-largest coal exporter, has supplied 2.39 MnT coal to Japan in May’18. Indonesian coal export in May’18 was 44% higher on the month from 1.66 MnT in Apr’18, but had fell 1% on the year compared with 2.42 MnT in May’17.
Russian was the third-largest coal exporter in May’18. The country had recorded increase in coal export both on the monthly and yearly basis, which was marked 1.6 MnT during the month.
Source: Japanese Customs | Quantity in MnT
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