South African Coal Exports Up 5% M-o-M in May’19

South African coal exports have rebounded after falling in Apr’19 to record 5% growth during May’19. As per the data provided by customs, exports in May’19 were marked at 6.92 MnT as against 6.61 MnT in Apr’19, which was also 11% higher on the year from 6.23 MnT in May’18.

During the beginning of CY19, South African coal exporters had directed more coal supplies towards the domestic market, amid weaker demand from India, and higher price realization in domestic market compared to exports.

However, a subsequent uptick in coal buying from India, have brought export volumes partially in line with the year-ago period. Apparently, Indian coal imports from South Africa have been in excess of 4 MnT in each of the past three months to May’19.

During the first 5 months of CY19, South African coal exports have totaled 33.03 MnT, posting slight fall of 2% from the corresponding period’s total of 33.54 MnT attained in CY18.

Major Coal Importers in May’19:
Indian remained the largest coal receiver of South African coal, despite recording a slight fall in intake during May’19. The country had imported 4.64 MnT coal in May’19 as against 4.7 MnT in Apr’19, which was also 39% higher on the year from 3.34 MnT in May’18.

Pakistan’s coal sourcing from South Africa fell to its lowest monthly total for CY19, marked at 0.67 MnT in May’19. The country had witnessed a slack demand for coal from its cement industry in recent times.

Vietnam emerged as the third-largest coal receiver, with imports of 0.22 MnT coal in May’19. Malaysia (0.14 MnT), UAE (0.11 MnT) and Mozambique (0.1 MnT) were the other noticeable coal importers in May’19.

European coal market is on a steep decline with gas being more economical source of power generation, which has ultimately depressed the outlook for coal. Notably, South African coal supply to its chief European consumer – Netherlands, was merely recorded at 0.08 MnT in May’19. Total deliveries in the first 5 months of CY19 have fallen 45% Y-o-Y to 0.36 MnT compared with 0.66 MnT marked in the same period of CY18.