South African coal exports have increased 8% on the month to 7.83 MnT in Nov’19, thus recording its highest monthly coal volumes for the CY19. Incidentally, country’s coal exports in the previous year had also peaked during the month of November, but the coal volumes were nearly 3% higher than the levels seen this term.
Data provided by South African showed that the country had exported 7.83 MnT in Nov’19 as against 8.08 MnT in Nov’18, which had increased 8% on the month from 7.28 MnT in Oct’19.
The month of November had seen significant growth in coal deliveries to its major coal customer’s-India and Pakistan.
Apparently, Indian sponge iron sector which had been hit hard this year by a slowdown in construction industry and prolonged monsoon rains, had exhibited greater urgency to procure South African coal shipments during the month.
Indian coal imports from South Africa increased 10% M-o-M to 4.38 MnT, attaining a 6-month high total in Nov’19. Import volumes were also marked 39% higher on the year from 3.16 MnT in Nov’18.
Pakistan- the second-largest coal receiver had also extended the monthly rise, by posting an 18% increase in coal intake during Nov’19. The country had procured 1.54 MnT coal in Nov’19 as against 1.3 MnT in Oct’19, which had surged 97% Y-o-Y from the levels attained in the year-ago period.
These increases offset a hefty decline in monthly coal imports noted from South Korea during Nov’19. Apparently, the country had taken 0.3 MnT coal from South Africa during the month falling 36% M-o-M compared with 0.47 MnT noted in Oct’19.
On the other hand, an exponential rise of 440% M-o-M was noted in coal sourcing from Bangladesh which had taken 0.27 MnT coal in Nov’19.
South African coal miner-Exxaro resources, said in its financial closing statement that the seaborne thermal coal market remained in an oversupplied position, which resulted in a significant drop in export sales prices in CY19.
The company had highlighted that soft ban on coal imports in China and a sluggish Indian economy put a lot of pressure on seaborne trades.
However, there is no denial in the fact that South Africa had failed to benefit from the expanding international trade in seaborne coal last year due to domestic supply constraints, at a time when Indonesia, met most of the increased demand from India.
During the first 11 months of CY19 (Jan-Nov’19), South African coal exports have reached 72.44 MnT, down 2% Y-o-Y 73.56 MnT noted in the year-ago period.
Leave a Reply