South African coal exports have rebounded after witnessing a 19-month low during Jan’19. Preliminary data from customs shows that the country has exported 7.07 MnT coal in Feb’19 against 5.08 MnT in Jan’19, marking a 39% M-o-M growth in the process.
South African coal market had witnessed a slack demand towards the end of the last year, as a consequence of the drastic fall in coal intake from its major buyers-India and Pakistan.
However, in order to replenish their stock with South African material, major buyers have picked up their imports during Feb’19.
Presently, there’s a little support in the prompt for South African coal, as physical prices have fallen to a multi-year lows. South African coal index API-4 was assessed at USD 69.95 for Apr’19, as on 7 Apr’19.
It is likely that demand from India will rise once they begin coal stoking prior to the monsoon period.
Coal Volume taken by Major Importers in Feb’19:
Indian coal imports from South Africa recorded a robust growth in Feb’19 as it grew 94% on the month to 2.89 MnT. Imports were also 12% higher on the year from 2.59 MnT in Feb’18.
Pakistan’s import increase 41% M-o-M to 0.85 MnT in Feb’19 against 0.85 MnT in Jan’19, also rising 38% Y-o-Y.
South Korea emerged as the third-largest coal receiver, with imports of 0.37 MnT in Feb’19.
Spain (0.31 MnT), Vietnam (0.3 MnT), Morocco (0.19 MnT) and Netherlands (0.17 MnT) were the other major coal receiver during Feb’19.
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