Overturning the decline witnessed in the previous month, South African coal exports have increased 11% on the month during Aug’19 amid support from South Korea and Pakistan.
Data provided by South African customs indicate that coal exports by the country were marked at 5.73 MnT in Aug’19 as against 5.14 MnT in Jul’19. However, coal volumes had fell 15% Y-o-Y from 6.77 MnT in Aug’18.
Tight domestic supply had forced South African coal away from the seaborne market as power utilities were readily procuring expensive supply contracts to meet short-term demand. South African exports have remained flat over the first 8 months of CY19 (Jan-Aug’19), marked at 50.8 MnT as against 51.91 MnT noted in the year-ago period.
It is expected that South African producers would divert more coal volumes to the domestic market, with buyers willing to offer higher prices than those on the seaborne market.
Major Coal Importers:
The month of Aug’19 had seen South African coal exports to its key market-India, tumbling to a 6-month low of 2.76 MnT. Coal volumes had fell 19% M-o-M from 3.4 MnT in Jul’19, which were also 7% lower on the year from 2.96 MnT in Aug’18.
Of late, cut down in output seen among various Sponge iron manufacturers have receded inflow of South African coal into the country. However, market participants expect that demand from the industrial sector will pick up with the end of the monsoon season later this month, also boosted by new government funding on the horizon.
Instead, a jump in exports to South Korea had supported South African coal shipments, which was marked highest since Apr’18. South Korean coal intake increased nearly 5-folds to 0.79 MnT in Aug’19.
Coal exports to South Africa’s second largest customer-Pakistan were marked 27% higher on the month at 0.81 MnT in Aug’19, but had fell 9% Y-o-Y from 0.89 MnT in Aug’18.
Elsewhere, Netherlands recorded its first coal shipment from South Africa since May’19. The country had bought 0.33 MnT coal in Aug’19.
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