Strong Indian demand supported South Africa’s coal exports in Mar’19, offsetting lower shipments to Pakistan and South Korea.
Data provided by customs indicates that South Africa had exported 7.35 MnT coal in Mar’19, up 4% M-o-M from 7.07 MnT in Feb’19.
Exports were down 2% on the year from 7.53 MnT in Mar’18. Eventually, total volume that was shipped in the first three months of 2019 had fallen 5% Y-o-Y to 19.5 MnT compared with 20.45 MnT in the corresponding period of CY18.
Renewed Indian Interest buoys South African Coal Exports:
South African coal shipments to India jumped 63% on the month to 4.7 MnT in Mar’19 compared with 2.89 MnT in Feb’19, which was also 60% higher on the year from 2.94 MnT in Mar’18.
Notably, this was the greatest volume sent to India since January 2010, the period from which CoalMint has started compiling data for South African exports.
Firm coal demand amid growing industrial activity prior to the general elections had elevated Indian coal sourcing from South Africa.
In fact, Indian cement output rose by 15.7% on the year in Mar’19, according to the most recent data from the commerce and industry ministry. Cement sector is widely known as a chief consumer of South African coal in India.
Consequently, Indian coal intake from South Africa has increased 10% Y-o-Y to 9.08 MnT during the first quarter of CY19.
Subdued Demand from Other Major Coal Importers:
Demand for South African coal from buyers outside of India had slowed in Mar’19, wherein increased appetite from Indian buyers had curtailed the availability of March-loading cargoes.
It is pertinent to note that India had accounted for 64% of the total coal intake in Mar’19, attaining a significant jump from its previous month’s share of 41%.
South African coal intake by Pakistan had fell 23% M-o-M to 0.93 MnT in Mar’19, which was also 14% lower on the year from 1.08 MnT in Mar’18.
South Korean coal imports slipped 68% on the month to 0.15 MnT in Mar’19, weighted down by comparatively higher coal inventories resulting from mild winter and a slowdown in power sector coal consumption.
Among the coal importers of South African coal other than India, only Sri Lanka had recorded a noticeable m-o-m growth during Mar’19.
Morocco emerged as the third-largest receiver of South African coal, after India and Pakistan, with imports of 0.19 MnT coal in Mar’19.
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