South African thermal coal exports for Oct’20 is recorded at 6.25 mn t, down by 3.4% m-o-m and by 16% y-o-y, vessel-line up data with CoalMint reveals.
While India remained the top importer of South African coal at 3.97 mn t, up by 26% m-o-m. Among the traders, Adani Enterprise booked the highest quantity, while Rashmi Group booked the second highest quantity.
Indian buyers booked South African coal in October in anticipation of price rise and also amid rising sponge iron prices backed by rising pellet and iron ore offers.
Gangavaram received the highest quantity (0.80 mn t) of South African coal, down by 19% m-o-m.
South African coal imports at Indian ports
Qty in mn t
Except for India, all other key importers of South African coal such as Pakistan, Vietnam, and South Korea recorded a significant drop in their imports in October.
This is mainly because of increased competition from cheaper Australia and Indonesian coal. While South African coal (5500 NAR) averaged around $46/t, FoB RBCT in October, Australian (5500 NAR) coal averaged at $39/t, FoB Newcastle and the popularly used Indonesian 4200 GAR and 5800 GAR coal averaged at $28.1/t and $40/t respectively, FoB Kalimanthan basis.
Hence, the cement manufacturers in Pakistan opted for Australian thermal coal over South African coal. Whereas, coal-fired power producers in Vietnam and South Korea opted for more of Australian thermal coal.
Outlook ahead
The South African coal index is rising starting November and is anticipated to move up further amid supply concerns in the country. However, there is no panic buying by Indian coal importers due to sufficient availability of stock at Indian ports and stable demand. Also, in case of other countries, the cheaper Australian and Indonesian coal continue to be the preferred options resulting which South African coal exports are unlikely to see any significant rise in November.
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