South African coal exports have decreased 8% on the month in Oct’18, following a subdued intake from its major buyers-India and Netherlands.
According to the data provided by South African customs, the country’s export has fell to 6.51 MnT in Oct’18 against 7.06 MnT in Sep’18, which was also 11% lower on the year from 7.28 MnT in Oct’17.
Indian demand for South African coal was lowered by the better price realisation from Indonesian coal, which had noted a significant jump in the country’s share of Oct’18 imports. Consequently, Indian coal sourcing from Africa had declined to a yearly low of 2 MnT during Oct’18, falling 38% M-o-M from 3.24 MnT in Sep’18, also down 34% Y-o-Y from Oct’17.
The Chinese restriction on imports would compel more Indonesian and Australian coal to be directed to the Indian market, which in turn would force South African miners to raise the discount in order to compete with its cheaper alternatives.
Market participants have informed that South African 5500 NAR was currently available at a discount of USD 25/MT, while discount on 4800 NAR was noted at USD 36/MT.
South African coal index has risen steadily since the beginning of the month, but still were at levels lower than the previous month, which would incite improved buying from India’s non-power fraternity.
Netherlands remained the second-largest importer of South African coal despite recording a 20% fall in monthly intake during Oct’18. The country had received 0.67 MnT coal against 0.84 MnT in Sep’18, which was still 37% higher on the year from 0.49 MnT in Oct’17.
South Korea emerged as the third-largest coal importer with a significant rise of 320% M-o-M in Oct’18. The country had imported 0.63 MnT coal during the month against 0.15 MnT coal in Sep’18.
Pakistan slipped to the fourth spot with 0.6 MnT coal imports, which was 7% higher on the month from 0.56 MnT in Sep’18.
Turkey, Mozambique, Sri Lanka, Spain and Taiwan were among the other major coal importers during the month.
Source: South African customs | Quantity in MnT
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