South African Coal Exports Down 3% in Mar’17

South Africa, world’s fifth largest coal exporters, have suffered downfall of 3% M-o-M in their monthly coal exports. The country has exported 6.64 MnT in Mar’17 compared with 6.85 MnT in Feb’17.

Coal Exports have however marginally increased by 1% Y-o-Y compared with 6.59 MnT in Mar’16, according to the data released by South African Customs.

During the first quarter of the year (Jan’17-Mar’17), the country has exported 19.52 MnT coal against 17.78 MnT exported during the corresponding months of the previous year, thus registering a growth of 10% Y-o-Y.

Coal Production in South Africa:
South32 is a coal mining company operating in the towns of Emalahleni and Middleburg in South Africa. The company has decided to cut down its coal production for its fiscal 2016-17(July-June).

Export sales and pit development at the Middleburg complex were impacted by heavy rainfall in Jan-Mar’17 as a result of which the total coal production stood at 6.68 MnT in Jan-Mar’17 period, down by 13% Y-o-Y. Hence, the miner has decided to lower its production to 30 MnT from 30.9 MnT.

Also, Anglo American plc, a global company involved in coal mining in South Africa has recently announced the sale of its Eskom-tied domestic thermal coal operations in South Africa to a wholly owned subsidiary of Seriti Resources Holdings Proprietary Ltd.

Grade-wise Coal Exports:
South Africa majorly exports Bituminous coal which accounts for more than 95% of the total coal exports. Anthracite, Coke & semi-coke, Pet coke and other grades of coal constitute remaining coal commodities exported by the country.

During Mar’17, South Africa witnessed fall in exports of Bituminous coal and Anthracite. While the exports of the remaining coal grades increased over the month.

Preliminary Data
Source: South African Customs
Quantities in MnT

Major Export Destinations:
India remained the top coal importing nation from South Africa in Mar’17 followed by Pakistan, South Korea and Sri Lanka.

India received 3.21 MnT coal during Mar’17 recording a growth of 11% M-o-M. However, the monthly imports in Mar’17 were lower by 21% Y-o-Y compared with 4.04 MnT imported during Mar’16.

Pakistan, second-largest coal importer in Mar’17, saw significant improvement in their monthly imports from South Africa. Pakistan received coal shipment of 1.17 MnT, thus registering a growth of 148% M-o-M and 204% Y-o-Y.