According to the vessel line-up data compiled by CoalMint Research, coal shipment delivered from South Africa’s premium port Richards Bay (RBCT) have increased 19% on the month to 7.29 MnT in May’19 compared with 6.15 MnT in Apr’19.
Export volumes were also 35% higher on the year from 5.41 MnT in May’18.
Overcoming subdued imports in the beginning of CY19, Indian coal buying from RBCT has been aggressive in the recent months. The country has recorded coal intake in excess of 4 MnT in each of the last three months.
Indian coal imports from RBCT have increased 28% Y-o-Y to 18.4 MnT in the first 5 months of CY19 (Jan’19-May’19). Apparently, Imports in May’19 were up 9% M-o-M to 4.9 MnT, also rising 90% higher on the year from 2.58 MnT in May’18.
Besides, RBCT’s coal supplies to Pakistan rebounded after falling since the beginning of CY19, to record 21% growth during the month. Pakistan had taken 0.77 MnT coal in May’19.
UAE with 0.17 MnT coal imports was the third largest coal receiver from RBCT during the month. Also supporting RBCT’s exports were countries like Taiwan, Malaysia, Poland and Kenya which had taken coal shipments in May’19 after recording nil imports in the previous month.
Coal Prices Slump in an Oversupply Market:
South African coal prices have remained under pressure, even as RBCT has managed to boost exports slightly in the three months to end-May.
The compelling reason for the lower prices can be attributed to the fact that more coal is being offered by producers than there is demand in the market.
As per the data maintained by CoalMint Research, prices of South African 5500 NAR coal have averaged USD 56/MT in the ongoing second quarter of CY19, falling nearly 34% from the average price of USD 85/MT recorded in the first quarter.
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