South Africa: Non-coking coal exports drop to 4-month low in Jun’25 on lower Indian demand

• India’s imports plunge to four-month low
• Pakistan, Netherlands increase imports

South Africa’s non-coking coal exports fell 25% to a four-month low of 4.64 million tonnes (mnt) in June 2025 from 6.15 mnt in May, amid reduced shipments to key Asian buyers such as India. Cumulative exports reached 33.3 mnt in January-June.

Region-wise exports point to mixed demand trends

India’s imports dropped sharply by 47% to 2.02 mnt in June from 3.78 mnt in May, the lowest in four months. High port stocks, falling sponge iron prices, and sufficient allocations at domestic coal auctions resulted in a drop in inquiries for imports by Indian sponge players.

Notably, in India’s key sponge iron production hubs of Raipur, Durgapur, and Bellary in central, eastern, and southern India, respectively, prices dropped to over four-year lows in May, levels last witnessed in February 2021. Additionally, monthly average prices of pellet-based DRI (PDRI) declined by INR 1,450-2,400/t in major hubs such as Raipur and Durgapur in May.

Meanwhile, Pakistan’s intake surged to 0.86 mnt from 0.19 mnt, and the Netherlands also increased its imports to 0.33 mnt from 0.23 mnt. New demand emerged from South Korea, China, and Yemen, suggesting broader diversification despite the overall decline.

Other buyers such as Taiwan and Vietnam cut purchases, while smaller volumes were exported to markets such as Turkey, Bangladesh, Bulgaria, and Brazil, reflecting mixed demand trends across regions.

Market overview

In June 2025, South African thermal coal prices fell m-o-m. At Gangavaram, RB2 averaged INR 7,700/tonne (t) exw, down INR 450/t from INR 8,150/t in May, while RB3 averaged INR 6,750/t, down INR 350/t from INR 7,100/t in May. On a CNF basis, RB2 dropped by $5.5/t to $81/t in June compared to $86.5/t in May, reflecting softer demand.

South African portside coal prices held steady this week despite an uncertain market. RB2 (5500 NAR) was assessed at INR 7,600/t and RB3 (4800 NAR) at INR 6,600/t exw-Gangavaram. CNF deals were heard at $76/t for RB2, with FOB deals at $66-68/t.