Japanese Coal Imports Hit 19-Month High in Jul’19

Japanese coal imports in Jul’19 jumped to their highest level since Dec’17 boosted by an increased receipt of non-coking coal shipments.

Data provided by customs indicates that coal import by the country surged 25% on the month to 18.46 MnT in Jul’19 compared with 14.71 MnT in Jun’19. Import volumes had also increased 13% Y-o-Y from 16.37 MnT in Jul’18.

Notably, non-coking coal imports rose on the year for the first time since Apr’19, as the fuel’s cost advantage over LNG for thermal generation supported demand amid a dip in nuclear availability.

Apparently, Japanese nuclear availability fell on the year for the first time during the month in over two years as mandatory maintenance following 13 months of continuous service took two reactors offline.

Grade-wise Coal Imports:

Japan imported 12.58 MnT non-coking coal in Jul’19, up 29% M-o-M from 9.77 MnT in Jun’19.

The country had also witnessed a remarkable growth in coking coal imports driven by an improved availability of Australian coal, as miners sought to ramp up sales before the end of fiscal year.

Coking coal imports rebounded after a 2-month successive decline, rising 34% M-o-M to 4.01 MnT in Jul’19.

Pet coke was the third-largest traded coal commodity during the month, however, its imports were marked 10% lower on the month at 0.52 MnT in Jul’19.

Source: Japan customs
Quantity in MnT

Major Coal Exporters:

Japanese coal imports from top supplier Australia rose by 29% on the month to 10.74 MnT, which was also the highest volume since Aug’18. Import volumes were also 14% higher on the year from 9.45 MnT in Jul’18.

Indonesian coal supplies to Japan increased 21% M-o-M to 2.72 MnT in Jul’19, which were also 3% higher on the year from 2.65 MnT in Jul’18.

Russia attained its highest monthly coal shipment to Japan for the CY19, with supplies of 1.86 MnT coal during Jul’19. However, coal volume had fell 8% Y-o-Y from 2.03 MnT in Jul’18.