South African coal exports have dropped to a 10-month low total in May’18, following weaker imports from its major customers-India, Pakistan and South Korea.
As per the data provided by South African customs, coal export from the country has decreased 9% M-o-M to 6.23 MnT in May’18, which was also 17% lower on the year compared with 7.52 MnT in May’17.
The fall in country’s coal export could be largely attributed to surging coal prices which had affected buying sentiments from its major importers.
As per CoalMint’s assessment, monthly average price of South African 5500 NAR coal was assessed at USD 80.56/MT on FoB basis in Apr’18, against the previous month’s average of USD 78.4/MT.
Any sign of price correction was restrained by the tightness in coal supply as a result of which South African coal price index had crossed the USD 100 mark. Consequently, monthly average of 5500 NAR coal had increased to USD 88.7/MT in May’18.
Coal imports from South Africa’s chief coal customer –India, had remain subdued in May’18, as buyers had stayed largely on the sidelines while waiting for price corrections.
However, in order to pre-stock coal before the monsoon, Indian coal import shipments from RBCT has increased significantly in Jun’18, which was earlier reported by CoalMint based on the vessel line-up data. The demand for imported coal was also necessitated by lower coal allocation in the domestic auctions for non-power sector in May’18.
As per the data provided by Coal Ministry, 0.92 MnT coal was allocated in the Exclusive e-auction for non-power during May’18, which was 78% lower on the year compared with the allocation of 4.32 MnT coal in May’17. On the other hand, coal allocation in Special forward coal auction for power sector had increased 6.8% Y-o-Y to 6.75 MnT in May’18.
Major Coal Importers in May’18:
Indian coal imports from South Africa dropped 2% M-o-M to 3.34 MnT in May’18 against 3.41 MnT in Apr’18. Imports had also witnessed a significant decline of 14% Y-o-Y from 3.89 MnT in May’17.
South Korean replaced Pakistan to become second-largest coal importer, despite recording a fall of 7% in monthly import during May’18. Korean coal import totaled 0.75 MnT in May’18, which was 47% higher on the year compared with 0.51 MnT in May’17.
Pakistan’s coal import had fell 49% M-o-M to 0.68 MnT in May’18, which was also 32% lower on the year compared with 1 MnT in May’17.
Source: South African customs | Quantity in MnT
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