South African Coal Exports Down; 5-Months low in Jan’17

South Africa coal exports have fallen to lowest level since Aug’16.

South Africa, major thermal coal exporters in the globe, witnessed a decline in their monthly coal exports by 16% to 6.03 MnT in Jan’17. The coal exports have reached the lowest level since the monthly exports of 6.21 MnT coal in Aug’16.

Apart from monthly decline, coal exports have also fallen 4% Y-o-Y compared with 6.25 MnT in Jan’16. According to data released by South African customs.

Low coal demand in European countries after the end of the winter season has majorly contributed to the fall in exports.

South Africa Exports Grade-wise:
South Africa majorly exports Bituminous, Anthracite and other grades of coal. In Jan’17, the country shipped 5.62 MnT Bituminous coal, 0.19 MnT Anthracite coal, and 0.22 MnT other grades of coal.

Exports of bituminous coal have fallen 19% M-o-M while that of anthracite coal have increased on monthly basis.

Source: South African Customs
Quantities in MnT

Major Importing Countries:
India remained the top coal importer of South African coal in Jan’17, followed by South Korea, Israel, Pakistan and Spain.

Indian buyers prefer South African coal for operating Sponge iron Plants, but with CIL aggressively promoting its coal, the Indian buyers are opting cheaper domestic coal rather than relying on imports. As a result import to India is declining.

Coal imports to India have fallen significantly by 57% Y-o-Y to 1.29 MnT in Jan’17 compared with 3.02 MnT in Jan’16. Monthly imports have also fallen by 26% from 1.75 MnT in Dec’16.

South Korea second-largest coal importers have received 1.16 MnT coal in Jan’17. Imports have increased by 20% M-o-M compared with 0.96 MnT in Dec’16.

Israel, third largest coal importers recorded major improvements in monthly coal imports from South Africa. The country imports increased from 0.19 MnT in Dec’16 to 0.51 MnT in Jan’17.