South Africa: RBCT Coal Exports Down 18% amid Slack Indian Demand

According to the vessel line-up data compiled by CoalMint Research, coal deliveries recorded from South Africa’s premium port, Richards Bay (RBCT), have fallen 18% on the month to 6.01 MnT in Jun’19 compared with 7.29 MnT in May’19. The drop in export volume was largely due to the subdued intake from India.

Coal exports to India had lifted RBCT overall loading last month, which have been driven by a strong industrial activity.

As per the recent data available from commerce ministry, Indian cement production has increased by 2.8% in May’19 over May’18. Its cumulative index increased by 2.5% during Apr-May’19 over the corresponding period of previous year.

Besides, demand for South African coal was steady with some buyers even looking to procure higher-CV products, which held their price advantage amid limited availability of lower grade supplies. Apparently, Indian buyers had noted coal shipments from RBCT in excess of 4 MnT in each of the past 3 months to May’19.

However, Indian coal intake from RBCT during Jun’19 has probably eased from the recent highs, also being weighted down by the start of monsoon season. Imports had dropped 38% M-o-M to 3.02 MnT in Jun’19 as against 4.9 MnT in May’19.

Contrarily, RBCT’s coal shipments to Pakistan rose for the second consecutive month during Jun’19. Exports to the country increased 10% M-o-M to 0.85 MnT in Jun’19 compared with 0.77 MnT in May’19.

Mauritius emerged as the third-largest coal receiver from RBCT, with its import rising almost 3-folds m-o-m to 0.26 MnT during Jun’19.

RBCT’s coal supply to South Korea was marked at 0.15 MnT in Jun’19, up from nothing in the previous month.

Elsewhere, coal deliveries to Europe remained slack during Jun’19, with no shipments recorded for Spain, Netherlands, Poland and the UK. France with 0.07 MnT coal was the sole receiver from RBCT during the month.

RBCT Exports by Destination

Source: CoalMint Research | Vessel Line-up Data
Quantity in MnT