Japanese Coal Imports Fell to a 6-Year Low in CY18

Japan has recorded its lowest coal imports in the past 6 years, as per the data provided by customs. The country has imported 196.33 MnT coal in CY18, down 1% Y-o-Y from 199.31 MnT in CY17.

Imports during Dec’18 had dropped 9% M-o-M to 16.37 MnT, which was also 15% lower on the year from 19.25 MnT in Dec’17.

Japan’s coal demand has been hit by the emergence of alternative fuels for power generation, while a rise in nuclear power output resulting from nuclear restarts had reduced import of fossil fuels-including oil and gas.

Media reports have claimed that Japanese oil imports had fallen to the lowest since at least 1979; besides its liquefied natural gas (LNG) purchases had also dropped in CY18.

A grade-wise break-up of Japanese coal imports indicate that intake of non-coking coal had decreased 2% Y-o-Y to 130.98 MnT in CY18 against 133.8 MnT in CY17.

Anthracite and Pet coke imports had also dropped on the year recorded at 6.09 MnT and 5.23 MnT in CY18.

However, Import of coking coal had increased along with Met coke, supported by an elevated demand for steel in the domestic construction sector.

Source: Japanese customs
Quantity in MnT

Major Coal Exporters:
Australia continued to have a lion’s share, but had witness decline in coal volume supplied to Japan in CY18. The country’s export was down 3% Y-o-Y to 116.11 MnT in CY18 against 119.13 MnT in CY17.

Indonesian coal export to Japan extended its fall in CY18, as it decreased 10% Y-o-Y to 28.87 MnT compared with 32.08 MnT in CY17.

Russia was the third largest exporter. Coal supplies from the country rose 3% on the year to 18.19 MnT in CY18.

US coal supplies to Japan had witnessed significant growth during the year, rising 28% Y-o-Y to 15.48 MnT in CY18.

China, Colombia, Vietnam, Mozambique and South Korea were among the other major coal exporters in CY18.